Document:

</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SECURITIES PURCHASE AGREEMENT<BR>
<BR>
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This <B>SECURITIES
PURCHASE AGREEMENT</B> (the &ldquo;Agreement&rdquo;), dated as of January 31, 2013, by and between <B>NYXIO TECHNOLOGIES CORPORATION</B>,
a Nevada corporation, with headquarters located at 2156 NE Broadway, Portland, OR 97232 (the &ldquo;Company&rdquo;), and <B>ASHER
ENTERPRISES, INC.</B>, a Delaware corporation, with its address at 1 Linden Place, Suite 207, Great Neck, NY 11021 (the &ldquo;Buyer&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>WHEREAS</B>:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A.<FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="color: black">The Company and the Buyer are executing and delivering this Agreement in reliance upon the exemption
from securities registration afforded by the rules and regulations as promulgated by the United States Securities and Exchange
Commission (the &ldquo;SEC&rdquo;) under the Securities Act of 1933, as amended (the &ldquo;1933 Act&rdquo;);</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">B.<FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="color: black">Buyer desires to purchase and the Company desires to issue and sell, upon the terms and conditions
set forth in this Agreement an 8% convertible note of the Company, in the form attached hereto as Exhibit A, in the aggregate principal
amount of $37,500.00 (together with any note(s) issued in replacement thereof or as a dividend thereon or otherwise with respect
thereto in accordance with the terms thereof, the &ldquo;Note&rdquo;), convertible into shares of common stock, $0.001 par value
per share, of the Company (the &ldquo;Common Stock&rdquo;), upon the terms and subject to the limitations and conditions set forth
in such Note.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">C.<FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="color: black">The Buyer wishes to purchase, upon the terms and conditions stated in this Agreement, such principal
amount of Note as is set forth immediately below its name on the signature pages hereto; and</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>NOW THEREFORE</B>,
the Company and the Buyer severally (and not jointly) hereby agree as follows:</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">1.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Purchase and Sale of Note.</U></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">a.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Purchase of Note</U>. On the Closing Date (as defined below), the Company
shall issue and sell to the Buyer and the Buyer agrees to purchase from the Company such principal amount of Note as is set forth
immediately below the Buyer&rsquo;s name on the signature pages hereto.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">b.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Form of Payment</U>. On the Closing Date (as defined below), </FONT><FONT STYLE="font-size: 10pt; color: red"><STRIKE></STRIKE></FONT><FONT STYLE="font-size: 10pt; color: black">(i)
the Buyer shall pay the purchase price for the Note to be issued and sold to it at the Closing (as defined below) (the &ldquo;Purchase
Price&rdquo;) by wire transfer of immediately available funds to the Company, in accordance with the Company&rsquo;s written wiring
instructions, against delivery of the Note in the principal amount equal to the Purchase Price as is set forth immediately below
the Buyer&rsquo;s name on the signature pages hereto, and (ii)&nbsp;the Company shall deliver such duly executed Note on behalf
of the Company, to the Buyer, against delivery of such Purchase Price. </FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">c.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Closing Date</U>. Subject to the satisfaction (or written waiver) of the
conditions thereto set forth in Section 6 and Section 7 below, the date and time of the issuance and sale of the Note pursuant
to this Agreement (the &ldquo;Closing Date&rdquo;) shall be 12:00 noon, Eastern Standard Time </FONT><FONT STYLE="font-size: 10pt">on
or about<FONT STYLE="color: black"> February 1, 2013, or such other mutually agreed upon time. The closing of the transactions
contemplated by this Agreement (the &ldquo;Closing&rdquo;) shall occur on the Closing Date at such location as may be agreed to
by the parties.</FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">2.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Buyer&rsquo;s Representations and Warranties.</U> The Buyer represents and
warrants to the Company that:</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">a.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Investment Purpose</U>. As of the date hereof, the Buyer is purchasing the
Note and the shares of Common Stock issuable upon conversion of or otherwise pursuant to the Note (including, without limitation,
such additional shares of Common Stock, if any, as are issuable </FONT><FONT STYLE="font-size: 10pt; color: red"><STRIKE></STRIKE></FONT><FONT STYLE="font-size: 10pt; color: black">(i)&nbsp;on
account of interest on the Note, </FONT><FONT STYLE="font-size: 10pt; color: red"><STRIKE></STRIKE></FONT><FONT STYLE="font-size: 10pt; color: black">(ii)&nbsp;as
a result of the events described in Sections 1.3 and 1.4(g) of the Note or </FONT><FONT STYLE="font-size: 10pt; color: red"><STRIKE></STRIKE></FONT><FONT STYLE="font-size: 10pt; color: black">(iii)&nbsp;in
payment of the Standard Liquidated Damages Amount (as defined in Section 2(f) below) pursuant to this Agreement, such shares of
Common Stock being collectively referred to herein as the &ldquo;Conversion Shares&rdquo; and, collectively with the Note, the
&ldquo;Securities&rdquo;) for its own account and not with a present view towards the public sale or distribution thereof, except
pursuant to sales registered or exempted from registration under the 1933 Act; <U>provided</U>, <U>however</U>, that by making
the representations herein, the Buyer does not agree to hold any of the Securities for any minimum or other specific term and reserves
the right to dispose of the Securities at any time in accordance with or pursuant to a registration statement or an exemption under
the 1933 Act.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">b.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Accredited Investor Status</U>. The Buyer is an &ldquo;accredited investor&rdquo;
as that term is defined in Rule 501(a) of Regulation D (an &ldquo;Accredited Investor&rdquo;).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">c.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Reliance on Exemptions</U>. The Buyer understands that the Securities are
being offered and sold to it in reliance upon specific exemptions from the registration requirements of United States federal and
state securities laws and that the Company is relying upon the truth and accuracy of, and the Buyer&rsquo;s compliance with, the
representations, warranties, agreements, acknowledgments and understandings of the Buyer set forth herein in order to determine
the availability of such exemptions and the eligibility of the Buyer to acquire the Securities.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">d.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Information</U>. The Buyer and its advisors, if any, have been, and for so
long as the Note remain outstanding will continue to be, furnished with all materials relating to the business, finances and operations
of the Company and materials relating to the offer and sale of the Securities which have been requested by the Buyer or its advisors.
The Buyer and its advisors, if any, have been, and for so long as the Note remain outstanding will continue to be, afforded the
opportunity to ask questions of the Company. Notwithstanding the foregoing, the Company has not disclosed to the Buyer any material
nonpublic information and will not disclose such information unless such information is disclosed to the public prior to or promptly
following such disclosure to the Buyer. Neither such inquiries nor any other due diligence investigation conducted by Buyer or
any of its advisors or representatives shall modify, amend or affect Buyer&rsquo;s right to rely on the Company&rsquo;s representations
and warranties contained in Section 3 below. The Buyer understands that its investment in the Securities involves a significant
degree of risk. The Buyer is not aware of any facts that may constitute a breach of any of the Company's representations and warranties
made herein.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">e.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Governmental Review</U>. The Buyer understands that no United States federal
or state agency or any other government or governmental agency has passed upon or made any recommendation or endorsement of the
Securities.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">f.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Transfer or Re-sale</U>. The Buyer understands that (i) the sale or re-sale
of the Securities has not been and is not being registered under the 1933 Act or any applicable state securities laws, and the
Securities may not be transferred unless (a)&nbsp;the Securities are sold pursuant to an effective registration statement under
the 1933 Act, (b)&nbsp;the Buyer shall have delivered to the Company, at the cost of the Buyer, an opinion of counsel that shall
be in form, substance and scope customary for opinions of counsel in comparable transactions to the effect that the Securities
to be sold or transferred may be sold or transferred pursuant to an exemption from such registration, which opinion shall be accepted
by the Company, </FONT><FONT STYLE="font-size: 10pt; color: red"><STRIKE></STRIKE></FONT><FONT STYLE="font-size: 10pt; color: black">(c)&nbsp;the
Securities are sold or transferred to an &ldquo;affiliate&rdquo; (as defined in Rule 144 promulgated under the 1933 Act (or a
successor rule) (&ldquo;Rule 144&rdquo;)) of the Buyer who agrees to sell or otherwise transfer the Securities only in accordance
with this Section 2(f) and who is an Accredited Investor, (d)&nbsp;the Securities are sold pursuant to Rule 144, or </FONT><FONT STYLE="font-size: 10pt; color: red"><STRIKE></STRIKE></FONT><FONT STYLE="font-size: 10pt; color: black">(e)&nbsp;the
Securities are sold pursuant to Regulation S under the 1933 Act (or a successor rule) (&ldquo;Regulation S&rdquo;), and the Buyer
shall have delivered to the Company, at the cost of the Buyer, an opinion of counsel that shall be in form, substance and scope
customary for opinions of counsel in corporate transactions, which opinion shall be accepted by the Company; (ii) any sale of
such Securities made in reliance on Rule 144 may be made only in accordance with the terms of said Rule and further, if said Rule
is not applicable, any re-sale of such Securities under circumstances in which the seller (or the person through whom the sale
is made) may be deemed to be an underwriter (as that term is defined in the 1933 Act) may require compliance with some other exemption
under the 1933 Act or the rules and regulations of the SEC thereunder; and (iii) neither the Company nor any other person is under
any obligation to register such Securities under the 1933 Act or any state securities laws or to comply with the terms and conditions
of any exemption thereunder (in each case). Notwithstanding the foregoing or anything else contained herein to the contrary, the
Securities may be pledged as collateral in connection with a <U>bona</U> <U>fide</U> margin account or other lending arrangement.
</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">g.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Legends</U>. The Buyer understands that the Note and, until such time as
the Conversion Shares have been registered under the 1933 Act may be sold pursuant to Rule 144 or Regulation S without any restriction
as to the number of securities as of a particular date that can then be immediately sold, the Conversion Shares may bear a restrictive
legend in substantially the following form (and a stop-transfer order may be placed against transfer of the certificates for such
Securities):</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 1in; text-align: justify"><B>&ldquo;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.&rdquo;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 1in; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The legend set forth
above shall be removed and the Company shall issue a certificate without such legend to the holder of any Security upon which it
is stamped, if, unless otherwise required by applicable state securities laws, (a) such Security is registered for sale under an
effective registration statement filed under the 1933 Act or otherwise may be sold pursuant to Rule 144 or Regulation S without
any restriction as to the number of securities as of a particular date that can then be immediately sold, or (b) such holder provides
the Company with an opinion of counsel, in form, substance and scope customary for opinions of counsel in comparable transactions,
to the effect that a public sale or transfer of such Security may be made without registration under the 1933 Act, which opinion
shall be accepted by the Company so that the sale or transfer is effected. The Buyer agrees to sell all Securities, including those
represented by a certificate(s) from which the legend has been removed, in compliance with applicable prospectus delivery requirements,
if any. In the event that the Company does not accept the opinion of counsel provided by the Buyer with respect to the transfer
of Securities pursuant to an exemption from registration, such as Rule 144 or Regulation S, at the Deadline, it will be considered
an Event of Default pursuant to Section 3.2 of the Note.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">h.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Authorization; Enforcement</U>. This Agreement has been duly and validly
authorized. This Agreement has been duly executed and delivered on behalf of the Buyer, and this Agreement constitutes a valid
and binding agreement of the Buyer enforceable in accordance with its terms.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">i.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Residency</U>. The Buyer is a resident of the jurisdiction set forth immediately
below the Buyer&rsquo;s name on the signature pages hereto. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">3.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Representations and Warranties of the Company</U>. The Company represents
and warrants to the Buyer that:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">a.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Organization and Qualification</U>. The Company and each of its Subsidiaries
(as defined below), if any, is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction
in which it is incorporated, with full power and authority (corporate and other) to own, lease, use and operate its properties
and to carry on its business as and where now owned, leased, used, operated and conducted. Schedule 3(a) sets forth a list of all
of the Subsidiaries of the Company and the jurisdiction in which each is incorporated. The Company and each of its Subsidiaries
is duly qualified as a foreign corporation to do business and is in good standing in every jurisdiction in which its ownership
or use of property or the nature of the business conducted by it makes such qualification necessary except where the failure to
be so qualified or in good standing would not have a Material Adverse Effect. &ldquo;Material Adverse Effect&rdquo; means any material
adverse effect on the business, operations, assets, financial condition or prospects of the Company or its Subsidiaries, if any,
taken as a whole, or on the transactions contemplated hereby or by the agreements or instruments to be entered into in connection
herewith. &ldquo;Subsidiaries&rdquo; means any corporation or other organization, whether incorporated or unincorporated, in which
the Company owns, directly or indirectly, any equity or other ownership interest.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">b.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Authorization; Enforcement</U>. (i) The Company has all requisite corporate
power and authority to enter into and perform this Agreement, the Note and to consummate the transactions contemplated hereby and
thereby and to issue the Securities, in accordance with the terms hereof and thereof, (ii) the execution and delivery of this Agreement,
the Note by the Company and the consummation by it of the transactions contemplated hereby and thereby (including without limitation,
the issuance of the Note and the issuance and reservation for issuance of the Conversion Shares issuable upon conversion or exercise
thereof) have been duly authorized by the Company&rsquo;s Board of Directors and no further consent or authorization of the Company,
its Board of Directors, or its shareholders is required, (iii) this Agreement has been duly executed and delivered by the Company
by its authorized representative, and such authorized representative is the true and official representative with authority to
sign this Agreement and the other documents executed in connection herewith and bind the Company accordingly, and (iv) this Agreement
constitutes, and upon execution and delivery by the Company of the Note, each of such instruments will constitute, a legal, valid
and binding obligation of the Company enforceable against the Company in accordance with its terms.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">c.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Capitalization</U>. As of the date hereof, the authorized capital stock of
the Company consists of: (i) 121,212,122 shares of Common Stock, $0.001 par value per share, of which 65,440,690 shares are issued
and outstanding; and (ii) 100 shares of Class B Convertible Preferred Stock, $0.01 par value per share, of which no shares are
issued and outstanding; no shares are reserved for issuance pursuant to the Company&rsquo;s stock option plans, no shares are reserved
for issuance pursuant to securities (other than the Note and three (3) prior convertible promissory notes in favor of the Buyer:
(a) prior convertible promissory note in favor of the Buyer dated June 6, 2012 in the amount of $63,000.00,the principal of which
is now reduced to $48,300.00; (b) prior convertible promissory note in favor of the Buyer dated July 10, 2012 in the amount of
$37,500.00 and (c) prior convertible promissory note dated November 13, 2012 in the amount of $40,000.000 for which an aggregate
total of 67,800,000 shares are presently reserved) exercisable for, or convertible into or exchangeable for shares of Common Stock
and the aggregate total of </FONT> <FONT STYLE="font-size: 10pt; color: black">67,800,000 shares are reserved for issuance upon
conversion of the Note and the prior convertible promissory note referenced above. All of such outstanding shares of capital stock
are, or upon issuance will be, duly authorized, validly issued, fully paid and non-assessable. No shares of capital stock of the
Company are subject to preemptive rights or any other similar rights of the shareholders of the Company or any liens or encumbrances
imposed through the actions or failure to act of the Company. As of the effective date of this Agreement, (i) there are no outstanding
options, warrants, scrip, rights to subscribe for, puts, calls, rights of first refusal, agreements, understandings, claims or
other commitments or rights of any character whatsoever relating to, or securities or rights convertible into or exchangeable for
any shares of capital stock of the Company or any of its Subsidiaries, or arrangements by which the Company or any of its Subsidiaries
is or may become bound to issue additional shares of capital stock of the Company or any of its Subsidiaries, (ii) there are no
agreements or arrangements under which the Company or any of its Subsidiaries is obligated to register the sale of any of its or
their securities under the 1933 Act and (iii) there are no anti-dilution or price adjustment provisions contained in any security
issued by the Company (or in any agreement providing rights to security holders) that will be triggered by the issuance of the
Note or the Conversion Shares. The Company has furnished to the Buyer true and correct copies of the Company&rsquo;s Certificate
of Incorporation as in effect on the date hereof (&ldquo;Certificate of Incorporation&rdquo;), the Company&rsquo;s By-laws, as
in effect on the date hereof (the &ldquo;By-laws&rdquo;), and the terms of all securities convertible into or exercisable for Common
Stock of the Company and the material rights of the holders thereof in respect thereto. The Company shall provide the Buyer with
a written update of this representation signed by the Company&rsquo;s Chief Executive on behalf of the Company as of the Closing
Date.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">d.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Issuance of Shares</U>. The Conversion Shares are duly authorized and reserved
for issuance and, upon conversion of the Note in accordance with its respective terms, will be validly issued, fully paid and non-assessable,
and free from all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive
rights or other similar rights of shareholders of the Company and will not impose personal liability upon the holder thereof.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">e.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Acknowledgment of Dilution</U>. The Company understands and acknowledges
the potentially dilutive effect to the Common Stock upon the issuance of the Conversion Shares upon conversion of the Note. The
Company further acknowledges that its obligation to issue Conversion Shares upon conversion of the Note in accordance with this
Agreement, the Note is absolute and unconditional regardless of the dilutive effect that such issuance may have on the ownership
interests of other shareholders of the Company.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">f.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>No Conflicts</U>. The execution, delivery and performance of this Agreement,
the Note by the Company and the consummation by the Company of the transactions contemplated hereby and thereby (including, without
limitation, the issuance and reservation for issuance of the Conversion Shares) will not (i) conflict with or result in a violation
of any provision of the Certificate of Incorporation or By-laws, or (ii) violate or conflict with, or result in a breach of any
provision of, or constitute a default (or an event which with notice or lapse of time or both could become a default) under, or
give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture, patent, patent
license or instrument to which the Company or any of its Subsidiaries is a party, or (iii) result in a violation of any law, rule,
regulation, order, judgment or decree (including federal and state securities laws and regulations and regulations of any self-regulatory
organizations to which the Company or its securities are subject) applicable to the Company or any of its Subsidiaries or by which
any property or asset of the Company or any of its Subsidiaries is bound or affected (except for such conflicts, defaults, terminations,
amendments, accelerations, cancellations and violations as would not, individually or in the aggregate, have a Material Adverse
Effect). Neither the Company nor any of its Subsidiaries is in violation of its Certificate of Incorporation, By-laws or other
organizational documents and neither the Company nor any of its Subsidiaries is in default (and no event has occurred which with
notice or lapse of time or both could put the Company or any of its Subsidiaries in default) under, and neither the Company nor
any of its Subsidiaries has taken any action or failed to take any action that would give to others any rights of termination,
amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company or any of its Subsidiaries
is a party or by which any property or assets of the Company or any of its Subsidiaries is bound or affected, except for possible
defaults as would not, individually or in the aggregate, have a Material Adverse Effect. The businesses of the Company and its
Subsidiaries, if any, are not being conducted, and shall not be conducted so long as the Buyer owns any of the Securities, in violation
of any law, ordinance or regulation of any governmental entity. Except as specifically contemplated by this Agreement and as required
under the 1933 Act and any applicable state securities laws, the Company is not required to obtain any consent, authorization or
order of, or make any filing or registration with, any court, governmental agency, regulatory agency, self regulatory organization
or stock market or any third party in order for it to execute, deliver or perform any of its obligations under this Agreement,
the Note in accordance with the terms hereof or thereof or to issue and sell the Note in accordance with the terms hereof and to
issue the Conversion Shares upon conversion of the Note. All consents, authorizations, orders, filings and registrations which
the Company is required to obtain pursuant to the preceding sentence have been obtained or effected on or prior to the date hereof.
The Company is not in violation of the listing requirements of the Over-the-Counter Bulletin Board (the &ldquo;OTCBB&rdquo;) and
does not reasonably anticipate that the Common Stock will be delisted by the OTCBB in the foreseeable future. The Company and its
Subsidiaries are unaware of any facts or circumstances which might give rise to any of the foregoing. </FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">g.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>SEC Documents; Financial Statements</U>. The Company has timely filed all
reports, schedules, forms, statements and other documents required to be filed by it with the SEC pursuant to the reporting requirements
of the Securities Exchange Act of 1934, as amended (the &ldquo;1934 Act&rdquo;) (all of the foregoing filed prior to the date hereof
and all exhibits included therein and financial statements and schedules thereto and documents (other than exhibits to such documents)
incorporated by reference therein, being hereinafter referred to herein as the &ldquo;SEC Documents&rdquo;). Upon written request
the Company will deliver to the Buyer true and complete copies of the SEC Documents, except for such exhibits and incorporated
documents. As of their respective dates, the SEC Documents complied in all material respects with the requirements of the 1934
Act and the rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents,
at the time they were filed with the SEC, contained any untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they
were made, not misleading. None of the statements made in any such SEC Documents is, or has been, required to be amended or updated
under applicable law (except for such statements as have been amended or updated in subsequent filings prior the date hereof).
As of their respective dates, the financial statements of the Company included in the SEC Documents complied as to form in all
material respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto.
Such financial statements have been prepared in accordance with United States generally accepted accounting principles, consistently
applied, during the periods involved and fairly present in all material respects the consolidated financial position of the Company
and its consolidated Subsidiaries as of the dates thereof and the consolidated results of their operations and cash flows for the
periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments). Except as set forth in
the financial statements of the Company included in the SEC Documents, the Company has no liabilities, contingent or otherwise,
other than (i) liabilities incurred in the ordinary course of business subsequent to September 30, 2012, and (ii) obligations under
contracts and commitments incurred in the ordinary course of business and not required under generally accepted accounting principles
to be reflected in such financial statements, which, individually or in the aggregate, are not material to the financial condition
or operating results of the Company. The Company is subject to the reporting requirements of the 1934 Act.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">h.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Absence of Certain Changes</U>. Since September 30, 2012, there has been
no material adverse change and no material adverse development in the assets, liabilities, business, properties, operations, financial
condition, results of operations, prospects or 1934 Act reporting status of the Company or any of its Subsidiaries.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">i.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Absence of Litigation</U>. There is no action, suit, claim, proceeding, inquiry
or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the
knowledge of the Company or any of its Subsidiaries, threatened against or affecting the Company or any of its Subsidiaries, or
their officers or directors in their capacity as such, that could have a Material Adverse Effect. Schedule 3(i) contains a complete
list and summary description of any pending or, to the knowledge of the Company, threatened proceeding against or affecting the
Company or any of its Subsidiaries, without regard to whether it would have a Material Adverse Effect. The Company and its Subsidiaries
are unaware of any facts or circumstances which might give rise to any of the foregoing.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">j.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Patents, Copyrights, etc</U>. The Company and each of its Subsidiaries owns
or possesses the requisite licenses or rights to use all patents, patent applications, patent rights, inventions, know-how, trade
secrets, trademarks, trademark applications, service marks, service names, trade names and copyrights (&ldquo;Intellectual Property&rdquo;)
necessary to enable it to conduct its business as now operated (and, as presently contemplated to be operated in the future); there
is no claim or action by any person pertaining to, or proceeding pending, or to the Company&rsquo;s knowledge threatened, which
challenges the right of the Company or of a Subsidiary with respect to any Intellectual Property necessary to enable it to conduct
its business as now operated (and, as presently contemplated to be operated in the future); to the best of the Company&rsquo;s
knowledge, the Company&rsquo;s or its Subsidiaries&rsquo; current and intended products, services and processes do not infringe
on any Intellectual Property or other rights held by any person; and the Company is unaware of any facts or circumstances which
might give rise to any of the foregoing. The Company and each of its Subsidiaries have taken reasonable security measures to protect
the secrecy, confidentiality and value of their Intellectual Property.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">k.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>No Materially Adverse Contracts, Etc</U>. Neither the Company nor any of
its Subsidiaries is subject to any charter, corporate or other legal restriction, or any judgment, decree, order, rule or regulation
which in the judgment of the Company&rsquo;s officers has or is expected in the future to have a Material Adverse Effect. Neither
the Company nor any of its Subsidiaries is a party to any contract or agreement which in the judgment of the Company&rsquo;s officers
has or is expected to have a Material Adverse Effect.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">l.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Tax Status</U>. The Company and each of its Subsidiaries has made or filed
all federal, state and foreign income and all other tax returns, reports and declarations required by any jurisdiction to which
it is subject (unless and only to the extent that the Company and each of its Subsidiaries has set aside on its books provisions
reasonably adequate for the payment of all unpaid and unreported taxes) and has paid all taxes and other governmental assessments
and charges that are material in amount, shown or determined to be due on such returns, reports and declarations, except those
being contested in good faith and has set aside on its books provisions 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 know of no basis for any such claim.
The Company has not executed a waiver with respect to the statute of limitations relating to the assessment or collection of any
foreign, federal, state or local tax. None of the Company&rsquo;s tax returns is presently being audited by any taxing authority.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">m.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Certain Transactions</U>. Except for arm&rsquo;s length transactions pursuant
to which the Company or any of its Subsidiaries makes payments in the ordinary course of business upon terms no less favorable
than the Company or any of its Subsidiaries could obtain from third parties and other than the grant of stock options disclosed
on Schedule 3(c), none of the officers, directors, or employees of the Company is presently a party to any transaction with the
Company or any of its Subsidiaries (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
corporation, partnership, trust or other entity in which any officer, director, or any such employee has a substantial interest
or is an officer, director, trustee or partner.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">n.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Disclosure</U>. All information relating to or concerning the Company or
any of its Subsidiaries set forth in this Agreement and provided to the Buyer pursuant to Section 2(d) hereof and otherwise in
connection with the transactions contemplated hereby is true and correct in all material respects and the Company has not omitted
to state any material fact necessary in order to make the statements made herein or therein, in light of the circumstances under
which they were made, not misleading. No event or circumstance has occurred or exists with respect to the Company or any of its
Subsidiaries or its or their business, properties, prospects, operations or financial conditions, which, under applicable law,
rule or regulation, requires public disclosure or announcement by the Company but which has not been so publicly announced or disclosed
(assuming for this purpose that the Company&rsquo;s reports filed under the 1934 Act are being incorporated into an effective registration
statement filed by the Company under the 1933 Act).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">o.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Acknowledgment Regarding Buyer&rsquo; Purchase of Securities</U>. The Company
acknowledges and agrees that the Buyer is acting solely in the capacity of arm&rsquo;s length purchasers with respect to this Agreement
and the transactions contemplated hereby. The Company further acknowledges that the Buyer is not acting as a financial advisor
or fiduciary of the Company (or in any similar capacity) with respect to this Agreement and the transactions contemplated hereby
and any statement made by the Buyer or any of its respective representatives or agents in connection with this Agreement and the
transactions contemplated hereby is not advice or a recommendation and is merely incidental to the Buyer&rsquo; purchase of the
Securities. The Company further represents to the Buyer that the Company&rsquo;s decision to enter into this Agreement has been
based solely on the independent evaluation of the Company and its representatives.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">p.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>No Integrated Offering</U>. 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 in any security or solicited
any offers to buy any security under circumstances that would require registration under the 1933 Act of the issuance of the Securities
to the Buyer. The issuance of the Securities to the Buyer will not be integrated with any other issuance of the Company&rsquo;s
securities (past, current or future) for purposes of any shareholder approval provisions applicable to the Company or its securities.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">q.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>No Brokers</U>. The Company has taken no action which would give rise to
any claim by any person for brokerage commissions, transaction fees or similar payments relating to this Agreement or the transactions
contemplated hereby. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">r.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Permits; Compliance</U>. The Company and each of its Subsidiaries is in possession
of all franchises, grants, authorizations, licenses, permits, easements, variances, exemptions, consents, certificates, approvals
and orders necessary to own, lease and operate its properties and to carry on its business as it is now being conducted (collectively,
the &ldquo;Company Permits&rdquo;), and there is no action pending or, to the knowledge of the Company, threatened regarding suspension
or cancellation of any of the Company Permits. Neither the Company nor any of its Subsidiaries is in conflict with, or in default
or violation of, any of the Company Permits, except for any such conflicts, defaults or violations which, individually or in the
aggregate, would not reasonably be expected to have a Material Adverse Effect. Since September 30, 2012, neither the Company nor
any of its Subsidiaries has received any notification with respect to possible conflicts, defaults or violations of applicable
laws, except for notices relating to possible conflicts, defaults or violations, which conflicts, defaults or violations would
not have a Material Adverse Effect.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">s.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Environmental Matters</U>.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 2in">(i)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black">There are, to the Company&rsquo;s knowledge, with respect to the Company or
any of its Subsidiaries or any predecessor of the Company, no past or present violations of Environmental Laws (as defined below),
releases of any material into the environment, actions, activities, circumstances, conditions, events, incidents, or contractual
obligations which may give rise to any common law environmental liability or any liability under the Comprehensive Environmental
Response, Compensation and Liability Act of 1980 or similar federal, state, local or foreign laws and neither the Company nor any
of its Subsidiaries has received any notice with respect to any of the foregoing, nor is any action pending or, to the Company&rsquo;s
knowledge, threatened in connection with any of the foregoing. The term &ldquo;Environmental Laws&rdquo; means all federal, state,
local or foreign laws relating to pollution or protection of human health or the environment (including, without limitation, ambient
air, surface water, groundwater, land surface or subsurface strata), including, without limitation, laws relating to emissions,
discharges, releases or threatened releases of chemicals, pollutants contaminants, or toxic or hazardous substances or wastes (collectively,
&ldquo;Hazardous Materials&rdquo;) into the environment, or otherwise relating to the manufacture, processing, distribution, use,
treatment, storage, disposal, transport or handling of Hazardous Materials, as well as all authorizations, codes, decrees, demands
or demand letters, injunctions, judgments, licenses, notices or notice letters, orders, permits, plans or regulations issued, entered,
promulgated or approved thereunder.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 2in">(ii)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black">Other than those that are or were stored, used or disposed of in compliance
with applicable law, no Hazardous Materials are contained on or about any real property currently owned, leased or used by the
Company or any of its Subsidiaries, and no Hazardous Materials were released on or about any real property previously owned, leased
or used by the Company or any of its Subsidiaries during the period the property was owned, leased or used by the Company or any
of its Subsidiaries, except in the normal course of the Company&rsquo;s or any of its Subsidiaries&rsquo; business.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 2in">(iii)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black">There are no underground storage tanks on or under any real property owned,
leased or used by the Company or any of its Subsidiaries that are not in compliance with applicable law.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">t.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Title to Property</U>. The Company and its Subsidiaries have good and marketable
title in fee simple to all real property and good and marketable title to all personal property owned by them which is material
to the business of the Company and its Subsidiaries, in each case free and clear of all liens, encumbrances and defects except
such as are described in Schedule 3(t) or such as would not have a Material Adverse Effect. Any real property and facilities held
under lease by the Company and its Subsidiaries are held by them under valid, subsisting and enforceable leases with such exceptions
as would not have a Material Adverse Effect.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">u.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Insurance</U>. The Company and each of its Subsidiaries are insured by insurers
of recognized financial responsibility against such losses and risks and in such amounts as management of the Company believes
to be prudent and customary in the businesses in which the Company and its Subsidiaries are engaged. Neither the Company nor any
such 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 at a cost that would not
have a Material Adverse Effect. Upon written request the Company will provide to the Buyer true and correct copies of all policies
relating to directors&rsquo; and officers&rsquo; liability coverage, errors and omissions coverage, and commercial general liability
coverage.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">v.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Internal Accounting Controls</U>. The Company and each of its Subsidiaries
maintain a system of internal accounting controls sufficient, in the judgment of the Company&rsquo;s board of directors, to provide
reasonable assurance that (i) transactions are executed in accordance with management&rsquo;s general or specific authorizations,
(ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted
accounting principles and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management&rsquo;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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">w.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Foreign Corrupt Practices</U>. Neither the Company, nor any of its Subsidiaries,
nor any director, officer, agent, employee or other person acting on behalf of the Company or any Subsidiary has, in the course
of his actions for, or on behalf of, the Company, used any corporate funds for any unlawful contribution, gift, entertainment or
other unlawful expenses relating to political activity; made any direct or indirect unlawful payment to any foreign or domestic
government official or employee from corporate funds; violated or is in violation of any provision of the U.S. Foreign Corrupt
Practices Act of 1977, as amended, or made any bribe, rebate, payoff, influence payment, kickback or other unlawful payment to
any foreign or domestic government official or employee.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">x.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Solvency</U>. The Company (after giving effect to the transactions contemplated
by this Agreement) is solvent (<U>i.e.</U>, its assets have a fair market value in excess of the amount required to pay its probable
liabilities on its existing debts as they become absolute and matured) and currently the Company has no information that would
lead it to reasonably conclude that the Company would not, after giving effect to the transaction contemplated by this Agreement,
have the ability to, nor does it intend to take any action that would impair its ability to, pay its debts from time to time incurred
in connection therewith as such debts mature. The Company did not receive a qualified opinion from its auditors with respect to
its most recent fiscal year end and, after giving effect to the transactions contemplated by this Agreement, does not anticipate
or know of any basis upon which its auditors might issue a qualified opinion in respect of its current fiscal year.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">y.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>No Investment Company</U>. The Company is not, and upon the issuance and
sale of the Securities as contemplated by this Agreement will not be an &ldquo;investment company&rdquo; required to be registered
under the Investment Company Act of 1940 (an &ldquo;Investment Company&rdquo;). The Company is not controlled by an Investment
Company.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">z.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Breach of Representations and Warranties by the Company</U>. If the Company
breaches any of the representations or warranties set forth in this Section 3, and in addition to any other remedies available
to the Buyer pursuant to this Agreement, it will be considered an Event of default under Section 3.4 of the Note.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">4.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>COVENANTS</U>.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">a.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Best Efforts</U>. The parties shall use their best efforts to satisfy timely
each of the conditions described in Section 6 and 7 of this Agreement. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">b.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Form D; Blue Sky Laws</U>. Unless the Company believes it is exempt from
such filing, the Company agrees to file a Form D with respect to the Securities as required under Regulation D and to provide a
copy thereof to the Buyer promptly after such filing. The Company shall, on or before the Closing Date, take such action as the
Company shall reasonably determine is necessary to qualify the Securities for sale to the Buyer at the applicable closing pursuant
to this Agreement under applicable securities or &ldquo;blue sky&rdquo; laws of the states of the United States (or to obtain an
exemption from such qualification), and shall provide evidence of any such action so taken to the Buyer on or prior to the Closing
Date.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">c.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Use of Proceeds</U>. The Company shall use the proceeds for general working
capital purposes.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">d.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Right of First Refusal</U>. Unless it shall have first delivered to the Buyer,
at least seventy two (72) hours prior to the closing of such Future Offering (as defined herein), written notice describing the
proposed Future Offering, including the terms and conditions thereof and proposed definitive documentation to be entered into in
connection therewith, and providing the Buyer an option during the seventy two (72) hour period following delivery of such notice
to purchase the securities being offered in the Future Offering on the same terms as contemplated by such Future Offering (the
limitations referred to in this sentence and the preceding sentence are collectively referred to as the &ldquo;Right of First Refusal&rdquo;)
(and subject to the exceptions described below), the Company will not conduct any equity financing (including debt with an equity
component) (&ldquo;Future Offerings&rdquo;) during the period beginning on the Closing Date and ending twelve (12) months following
the Closing Date. In the event the terms and conditions of a proposed Future Offering are amended in any respect after delivery
of the notice to the Buyer concerning the proposed Future Offering, the Company shall deliver a new notice to the Buyer describing
the amended terms and conditions of the proposed Future Offering and the Buyer thereafter shall have an option during the seventy
two (72) hour period following delivery of such new notice to purchase its pro rata share of the securities being offered on the
same terms as contemplated by such proposed Future Offering, as amended. The foregoing sentence shall apply to successive amendments
to the terms and conditions of any proposed Future Offering. The Right of First Refusal shall not apply to any transaction involving
(i) issuances of securities in a firm commitment underwritten public offering (excluding a continuous offering pursuant to Rule
415 under the 1933 Act) or (ii) issuances of securities as consideration for a merger, consolidation or purchase of assets, or
in connection with any strategic partnership or joint venture (the primary purpose of which is not to raise equity capital), or
in connection with the disposition or acquisition of a business, product or license by the Company. The Right of First Refusal
also shall not apply to the issuance of securities upon exercise or conversion of the Company&rsquo;s options, warrants or other
convertible securities outstanding as of the date hereof or to the grant of additional options or warrants, or the issuance of
additional securities, under any Company stock option or restricted stock plan approved by the shareholders of the Company. The
Right of First Refusal shall apply only to like transactions (i.e. convertible debentures) that are less than $100,000.00 in the
aggregate.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">e.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Expenses</U>. At the Closing, the Company shall reimburse Buyer for expenses
incurred by them in connection with the negotiation, preparation, execution, delivery and performance of this Agreement and the
other agreements to be executed in connection herewith (&ldquo;Documents&rdquo;), including, without limitation, reasonable attorneys&rsquo;
and consultants&rsquo; fees and expenses, transfer agent fees, fees for stock quotation services, fees relating to any amendments
or modifications of the Documents or any consents or waivers of provisions in the Documents, fees for the preparation of opinions
of counsel, escrow fees, and costs of restructuring the transactions contemplated by the Documents. When possible, the Company
must pay these fees directly, otherwise the Company must make immediate payment for reimbursement to the Buyer for all fees and
expenses immediately upon written notice by the Buyer or the submission of an invoice by the Buyer. The Company&rsquo;s obligation
with respect to this transaction is to reimburse Buyer&rsquo; expenses shall be $2,500.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">f.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Financial Information</U>. Upon written request the Company agrees to send
or make available the following reports to the Buyer until the Buyer transfers, assigns, or sells all of the Securities: </FONT><FONT STYLE="font-size: 10pt; color: red"><STRIKE>(i)</STRIKE></FONT><FONT STYLE="font-size: 10pt; color: black">(i)&nbsp;within
ten (10) days after the filing with the SEC, a copy of its Annual Report on Form 10-K its Quarterly Reports on Form 10-Q and any
Current Reports on Form 8-K; </FONT><FONT STYLE="font-size: 10pt; color: red"><STRIKE>(ii)</STRIKE></FONT><FONT STYLE="font-size: 10pt; color: black">(ii)&nbsp;within
one (1) day after release, copies of all press releases issued by the Company or any of its Subsidiaries; and </FONT><FONT STYLE="font-size: 10pt; color: red"><STRIKE>(iii)</STRIKE></FONT><FONT STYLE="font-size: 10pt; color: black">(iii)&nbsp;contemporaneously
with the making available or giving to the shareholders of the Company, copies of any notices or other information the Company
makes available or gives to such shareholders.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">g.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>[INTENTIONALLY DELETED]</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">h.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Listing</U>. The Company shall promptly secure the listing of the Conversion
Shares upon each national securities exchange or automated quotation system, if any, upon which shares of Common Stock are then
listed (subject to official notice of issuance) and, so long as the Buyer owns any of the Securities, shall maintain, so long as
any other shares of Common Stock shall be so listed, such listing of all Conversion Shares from time to time issuable upon conversion
of the Note. The Company will obtain and, so long as the Buyer owns any of the Securities, maintain the listing and trading of
its Common Stock on the OTCBB or any equivalent replacement exchange, the Nasdaq National Market (&ldquo;Nasdaq&rdquo;), the Nasdaq
SmallCap Market (&ldquo;Nasdaq SmallCap&rdquo;), the New York Stock Exchange (&ldquo;NYSE&rdquo;), or the American Stock Exchange
(&ldquo;AMEX&rdquo;) and will comply in all respects with the Company&rsquo;s reporting, filing and other obligations under the
bylaws or rules of the Financial Industry Regulatory Authority (&ldquo;FINRA&rdquo;) and such exchanges, as applicable. The Company
shall promptly provide to the Buyer copies of any notices it receives from the OTCBB and any other exchanges or quotation systems
on which the Common Stock is then listed regarding the continued eligibility of the Common Stock for listing on such exchanges
and quotation systems.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">i.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Corporate Existence</U>. So long as the Buyer beneficially owns any Note,
the Company shall maintain its corporate existence and shall not sell all or substantially all of the Company&rsquo;s assets, except
in the event of a merger or consolidation or sale of all or substantially all of the Company&rsquo;s assets, where the surviving
or successor entity in such transaction (i) assumes the Company&rsquo;s obligations hereunder and under the agreements and instruments
entered into in connection herewith and (ii) is a publicly traded corporation whose Common Stock is listed for trading on the OTCBB,
Nasdaq, Nasdaq SmallCap, NYSE or AMEX.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">j.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>No Integration</U>. The Company shall not make any offers or sales of any
security (other than the Securities) under circumstances that would require registration of the Securities being offered or sold
hereunder under the 1933 Act or cause the offering of the Securities to be integrated with any other offering of securities by
the Company for the purpose of any stockholder approval provision applicable to the Company or its securities.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">k.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Breach of Covenants</U>. If the Company breaches any of the covenants set
forth in this Section 4, and in addition to any other remedies available to the Buyer pursuant to this Agreement, it will be considered
an event of default under Section 3.4 of the Note.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">l.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Failure to Comply with the 1934 Act</U>. So long as the Buyer beneficially
owns the Note, the Company shall comply with the reporting requirements of the 1934 Act; and the Company shall continue to be subject
to the reporting requirements of the 1934 Act.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">m.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Trading Activities</U>. Neither the Buyer nor its affiliates has an open
short position in the common stock of the Company and the Buyer agree that it shall not, and that it will cause its affiliates
not to, engage in any short sales of or hedging transactions with respect to the common stock of the Company. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">5.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Transfer Agent Instructions</U>. The Company shall issue irrevocable instructions
to its transfer agent to issue certificates, registered in the name of the Buyer or its nominee, for the Conversion Shares in such
amounts as specified from time to time by the Buyer to the Company upon conversion of the Note in accordance with the terms thereof
(the &ldquo;Irrevocable Transfer Agent Instructions&rdquo;).&nbsp; In the event that the Borrower proposes to replace its transfer
agent, the Borrower shall provide, prior to the effective date of such replacement, a fully executed Irrevocable Transfer Agent
Instructions in a form as initially delivered pursuant to the Purchase Agreement (including but not limited to the provision to
irrevocably reserve shares of Common Stock in the Reserved Amount) signed by the successor transfer agent to Borrower and the Borrower.
Prior to registration of the Conversion Shares under the 1933 Act or the date on which the Conversion Shares may be sold pursuant
to Rule 144 without any restriction as to the number of Securities as of a particular date that can then be immediately sold, all
such certificates shall bear the restrictive legend specified in Section 2(g) of this Agreement.&nbsp; The Company warrants that:
(i) no instruction other than the Irrevocable Transfer Agent Instructions referred to in this Section 5, and stop transfer instructions
to give effect to Section 2(f) hereof (in the case of the Conversion Shares, prior to registration of the Conversion Shares under
the 1933 Act or the date on which the Conversion Shares may be sold pursuant to Rule 144 without any restriction as to the number
of Securities as of a particular date that can then be immediately sold), will be given by the Company to its transfer agent and
that the Securities shall otherwise be freely transferable on the books and records of the Company as and to the extent provided
in this Agreement and the Note; (ii) it will not direct its transfer agent not to transfer or delay, impair, and/or hinder its
transfer agent in transferring (or issuing)(electronically or in certificated form) any certificate for Conversion Shares to be
issued to the Buyer upon conversion of or otherwise pursuant to the Note as and when required by the Note and this Agreement; and
(iii) it will not fail to remove (or directs its transfer agent not to remove or impairs, delays, and/or hinders its transfer agent
from removing) any restrictive legend (or to withdraw any stop transfer instructions in respect thereof) on any certificate for
any Conversion Shares issued to the Buyer upon conversion of or otherwise pursuant to the Note as and when required by the Note
and this Agreement.&nbsp; Nothing in this Section shall affect in any way the Buyer&rsquo;s obligations and agreement set forth
in Section 2(g) hereof to comply with all applicable prospectus delivery requirements, if any, upon re-sale of the Securities.&nbsp;
If the Buyer provides the Company, at the cost of the Buyer, with (i) an opinion of counsel in form, substance and scope customary
for opinions in comparable transactions, to the effect that a public sale or transfer of such Securities may be made without registration
under the 1933 Act and such sale or transfer is effected or (ii) the Buyer provides reasonable assurances that the Securities can
be sold pursuant to Rule 144, the Company shall permit the transfer, and, in the case of the Conversion Shares, promptly instruct
its transfer agent to issue one or more certificates, free from restrictive legend, in such name and in such denominations as specified
by the Buyer.&nbsp; The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the
Buyer, by vitiating the intent and purpose of the transactions contemplated hereby.&nbsp; Accordingly, the Company acknowledges
that the remedy at law for a breach of its obligations under this Section 5 may be inadequate and agrees, in the event of a breach
or threatened breach by the Company of the provisions of this Section, that the Buyer shall be entitled, in addition to all other
available remedies, to an injunction restraining any breach and requiring immediate transfer, without the necessity of showing
economic loss and without any bond or other security being required.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">6.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Conditions to the Company&rsquo;s Obligation to Sell</U>. The obligation
of the Company hereunder to issue and sell the Note to the Buyer at the Closing is subject to the satisfaction, at or before the
Closing Date of each of the following conditions thereto, provided that these conditions are for the Company&rsquo;s sole benefit
and may be waived by the Company at any time in its sole discretion:</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">a.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black">The Buyer shall have executed this Agreement and delivered the same to the Company.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">b.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black">The Buyer shall have delivered the Purchase Price in accordance with Section
1(b) above.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">c.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black">The representations and warranties of the Buyer shall be true and correct in
all material respects as of the date when made and as of the Closing Date as though made at that time (except for representations
and warranties that speak as of a specific date), and the Buyer shall have performed, satisfied and complied in all material respects
with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Buyer
at or prior to the Closing Date. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">d.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black">No litigation, statute, rule, regulation, executive order, decree, ruling or
injunction shall have been enacted, entered, promulgated or endorsed by or in any court or governmental authority of competent
jurisdiction or any self-regulatory organization having authority over the matters contemplated hereby which prohibits the consummation
of any of the transactions contemplated by this Agreement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">7.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Conditions to The Buyer&rsquo;s Obligation to Purchase</U>. The obligation
of the Buyer hereunder to purchase the Note at the Closing is subject to the satisfaction, at or before the Closing Date of each
of the following conditions, provided that these conditions are for the Buyer&rsquo;s sole benefit and may be waived by the Buyer
at any time in its sole discretion:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">a.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black">The Company shall have executed this Agreement and delivered the same to the
Buyer.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">b.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black">The Company shall have delivered to the Buyer the duly executed Note (in such
denominations as the Buyer shall request) in accordance with Section 1(b) above.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">c.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black">The Irrevocable Transfer Agent Instructions, in form and substance satisfactory
to a majority-in-interest of the Buyer, shall have been delivered to and acknowledged in writing by the Company&rsquo;s Transfer
Agent.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">d.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black">The representations and warranties of the Company shall be true and correct
in all material respects as of the date when made and as of the Closing Date as though made at such time (except for representations
and warranties that speak as of a specific date) and the Company shall have performed, satisfied and complied in all material respects
with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Company
at or prior to the Closing Date. The Buyer shall have received a certificate or certificates, executed by the chief executive officer
of the Company, dated as of the Closing Date, to the foregoing effect and as to such other matters as may be reasonably requested
by the Buyer including, but not limited to certificates with respect to the Company&rsquo;s Certificate of Incorporation, By-laws
and Board of Directors&rsquo; resolutions relating to the transactions contemplated hereby.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">e.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black">No litigation, statute, rule, regulation, executive order, decree, ruling or
injunction shall have been enacted, entered, promulgated or endorsed by or in any court or governmental authority of competent
jurisdiction or any self-regulatory organization having authority over the matters contemplated hereby which prohibits the consummation
of any of the transactions contemplated by this Agreement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">f.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black">No event shall have occurred which could reasonably be expected to have a Material
Adverse Effect on the Company including but not limited to a change in the 1934 Act reporting status of the Company or the failure
of the Company to be timely in its 1934 Act reporting obligations.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">g.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black">The Conversion Shares shall have been authorized for quotation on the OTCBB
and trading in the Common Stock on the OTCBB shall not have been suspended by the SEC or the OTCBB.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">h.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black">The Buyer shall have received an officer&rsquo;s certificate described in Section
3(c) above, dated as of the Closing Date.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">8.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Governing Law; Miscellaneous</U>.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">a.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Governing Law</U>. 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. Any action brought by either party 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 Nassau. 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 <I>forum non conveniens</I>. The Company and Buyer 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 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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">b.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Counterparts</U>. This Agreement may be executed in one or more counterparts,
each of which shall be deemed an original but all of which shall constitute one and the same agreement and shall become effective
when counterparts have been signed by each party and delivered to the other party. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">c.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Headings</U>. The headings of this Agreement are for convenience of reference
only and shall not form part of, or affect the interpretation of, this Agreement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">d.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Severability</U>. In the event that any provision of this Agreement 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 provision hereof which
may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision hereof.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">e.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Entire Agreement; Amendments</U>. This Agreement and the instruments referenced
herein contain the entire understanding of the parties with respect to the matters covered herein and therein and, except as specifically
set forth herein or therein, neither the Company nor the Buyer makes any representation, warranty, covenant or undertaking with
respect to such matters. No provision of this Agreement may be waived or amended other than by an instrument in writing signed
by the majority in interest of the Buyer.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">f.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Notices</U>. 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: </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: 0.5in">If to the
Company, to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: 0.75in">NYXIO TECHNOLOGIES
CORPORATION</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: 0.75in">2156 NE
Broadway</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: 0.75in">Portland,
OR 97232</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.5in">Attn: GIORGIO JOHNSON, President/Chief
Executive Officer</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">facsimile: [enter fax number]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: 0.5in">With a copy
by fax only to (which copy shall not constitute notice):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: 0.75in">[enter
name of law firm]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: 0.75in">Attn: [attorney
name]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: 0.75in">[enter
address line 1]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: 0.75in">[enter
city, state, zip]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: 0.75in">facsimile:
[enter fax number]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If to the Buyer:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">ASHER ENTERPRISES,
INC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">1 Linden
Pl., Suite 207</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">Great Neck,
NY. 11021</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Attn: Curt Kramer,
President</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: 0.75in">facsimile:
516-498-9894</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: 0.5in">With a copy
by fax only to (which copy shall not constitute notice):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#9;Naidich Wurman
Birnbaum &amp; Maday LLP</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#9;80 Cuttermill Road,
Suite 410</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#9;Great Neck, NY
11021</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#9;Attn: Bernard S.
Feldman, Esq.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: 0.75in">facsimile:
516-466-3555</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Each party shall provide
notice to the other party of any change in address.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">g.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Successors and Assigns</U>. This Agreement shall be binding upon and inure
to the benefit of the parties and their successors and assigns. Neither the Company nor the Buyer shall assign this Agreement or
any rights or obligations hereunder without the prior written consent of the other. Notwithstanding the foregoing, subject to Section&nbsp;2(f),
the Buyer may assign its rights hereunder to any person that purchases Securities in a private transaction from the Buyer or to
any of its &ldquo;affiliates,&rdquo; as that term is defined under the 1934 Act, without the consent of the Company.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">h.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Third Party Beneficiaries</U>. This Agreement is intended for the benefit
of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision
hereof be enforced by, any other person.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">i.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Survival</U>. The representations and warranties of the Company and the agreements
and covenants set forth in this Agreement shall survive the closing hereunder notwithstanding any due diligence investigation conducted
by or on behalf of the Buyer. The Company agrees to indemnify and hold harmless the Buyer and all their officers, directors, employees
and agents for loss or damage arising as a result of or related to any breach or alleged breach by the Company of any of its representations,
warranties and covenants set forth in this Agreement or any of its covenants and obligations under this Agreement, including advancement
of expenses as they are incurred.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">j.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Publicity</U>. The Company, and the Buyer shall have the right to review
a reasonable period of time before issuance of any press releases, SEC, OTCBB or FINRA filings, or any other public statements
with respect to the transactions contemplated hereby; <U>provided</U>, <U>however</U>, that the Company shall be entitled, without
the prior approval of the Buyer, to make any press release or SEC, OTCBB (or other applicable trading market) or FINRA filings
with respect to such transactions as is required by applicable law and regulations (although the Buyer shall be consulted by the
Company in connection with any such press release prior to its release and shall be provided with a copy thereof and be given an
opportunity to comment thereon).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">k.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Further Assurances</U>. Each party shall do and perform, or cause to be done
and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments
and documents, as the other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement
and the consummation of the transactions contemplated hereby.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">l.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>No Strict Construction</U>. The language used in this Agreement will be deemed
to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against
any party.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">m.<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 10pt; color: black"><U>Remedies</U>. The Company acknowledges that a breach by it of its obligations
hereunder will cause irreparable harm to the Buyer by vitiating the intent and purpose of the transaction contemplated hereby.
Accordingly, the Company acknowledges that the remedy at law for a breach of its obligations under this Agreement will be inadequate
and agrees, in the event of a breach or threatened breach by the Company of the provisions of this Agreement, that the Buyer shall
be entitled, in addition to all other available remedies at law or in equity, and in addition to the penalties assessable herein,
to an injunction or injunctions restraining, preventing or curing any breach of this Agreement and to enforce specifically the
terms and provisions hereof, without the necessity of showing economic loss and without any bond or other security being required.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">IN WITNESS WHEREOF,
the undersigned Buyer and the Company have caused this Agreement to be duly executed as of the date first above written.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>NYXIO TECHNOLOGIES CORPORATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 2.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">By:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">GIORGIO JOHNSON</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">President/Chief Executive Officer</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>ASHER ENTERPRISES, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">By:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Name: Curt Kramer</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Title: President</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1 Linden Pl., Suite 207</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Great Neck, NY. 11021</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">AGGREGATE SUBSCRIPTION AMOUNT:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font-size: 10pt; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; padding-right: 5.4pt; padding-left: 5.4pt; font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-size: 10pt; color: black">Aggregate Principal Amount of Note:</FONT></TD>
    <TD STYLE="width: 50%; padding-right: 5.4pt; padding-left: 5.4pt; font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-size: 10pt; color: black">$37,500.00</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 10pt; color: black">Aggregate Purchase Price:</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-size: 10pt; color: black">$37,500.00</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">3134(4) 1-31-13</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">giorgio@nyxio.com</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="margin: 0">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),
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:
$41,500.00  Issue
Date: April
11, 2013

Purchase
Price:
$41,500.00

 

 

 

CONVERTIBLE
PROMISSORY
NOTE

 

FOR
VALUE RECEIVED,
NYXIO TECHNOLOGIES
CORPORATION,
a Nevada corporation
(hereinafter
called
the “Borrower”),
hereby promises
to pay to
the order
of ASHER
ENTERPRISES,
INC., a Delaware
corporation,
or registered
assigns
(the “Holder”)
the sum
of

$41,500.00
together
with any
interest
as set
forth
herein, on
January
16, 2014
(the “Maturity
Date”),
and to
pay interest
on the unpaid
principal
balance
hereof
at the
rate
of eight
percent
(8%)
(the “Interest
Rate”)
per annum
from the
date hereof
(the “Issue
Date”)
until the same becomes
due and
payable,
whether
at maturity
or upon acceleration
or by prepayment
or otherwise. This Note may
not be prepaid
in whole or in part except
as otherwise explicitly
set forth
herein. Any
amount of
principal
or interest on
this Note which
is not paid
when due
shall bear interest
at the rate of
twenty two percent
(22%)
per annum from
the due date thereof
until the same
is paid
(“Default
Interest”).
Interest
shall commence
accruing
on the date
that the
Note is fully paid
and shall be computed
on the basis of a 365-day
year
and the actual
number of days
elapsed.
All payments
due hereunder
(to the extent
not converted
into common stock,
$0.001 par value per
share (the
“Common
Stock”) in
accordance
with the terms
hereof)
shall be made
in lawful money
of the United States
of America. All payments
shall be made
at such address
as the Holder
shall
hereafter
give to
the Borrower
by written
notice made
in accordance
with the provisions
of this Note.
Whenever
any amount
expressed
to be due
by the terms
of this Note
is due on any
day
which is
not a business
day,
the same
shall instead
be due on
the next
succeeding
day which
is a business
day and,
in the case
of any
interest payment
date
which
is not the
date on
which this Note is paid in full,
the extension
of the due date thereof
shall not be taken
into account for
purposes
of determining the
amount of interest
due on such date.
As used in this Note,
the term
“business
day” shall
mean any
day other
than a Saturday,
Sunday or
a day on which commercial
banks in the city
of New York,
New York
are authorized
or required
by law
or executive
order to remain
closed. Each
capitalized
term used herein,
and not otherwise defined,
shall have
the meaning
ascribed
thereto
in that
certain
Securities
Purchase
Agreement
dated
the date
hereof,
pursuant to
which this
Note was
originally
issued
(the “Purchase
Agreement”).

    	1

    	 

    

This
Note is free
from all
taxes,
liens, claims
and encumbrances
with respect
to the issue
thereof and
shall not
be subject
to preemptive
rights
or other similar rights
of shareholders
of the Borrower
and will not impose personal
liability
upon the holder
thereof.

 

The following
terms shall
apply
to this Note:

 

ARTICLE
I. CONVERSION
RIGHTS

 

1.1  Conversion
Right. 
The Holder
shall have
the right
from time
to time,
and
at any
time during
the period
beginning
on the date
which is
one hundred
eighty
(180) days
following the date
of this Note
and ending
on the later
of: (i)
the Maturity
Date and
(ii) the
date of payment
of the Default
Amount (as
defined
in Article
III) pursuant
to Section
1.6(a) or
Article III,
each
in respect
of the
remaining
outstanding
principal
amount of
this Note to
convert
all or any
part
of the outstanding
and unpaid
principal
amount of
this Note into
fully paid
and non-
assessable
shares
of Common Stock,
as such Common
Stock exists
on the Issue Date,
or any shares
of capital
stock or
other securities
of the Borrower
into which
such Common
Stock
shall hereafter
be changed
or reclassified
at the conversion
price 
(the “Conversion
Price”) determined
as provided
herein
(a “Conversion”);
provided,
however,
that in
no event
shall the Holder
be entitled
to convert
any
portion
of this Note
in excess
of that
portion of
this Note upon
conversion
of which the sum of (1)
the number of
shares of Common
Stock beneficially
owned by the
Holder and
its affiliates
(other
than shares
of Common
Stock
which may
be deemed
beneficially
owned through
the ownership
of the unconverted
portion of the Notes
or the unexercised
or unconverted
portion of any
other security
of the Borrower
subject to a
limitation on conversion
or exercise
analogous
to the limitations
contained
herein) and
(2) the
number of
shares of Common
Stock issuable
upon the conversion
of the portion of this Note with respect
to which the
determination
of this
proviso is
being made,
would result
in beneficial
ownership by the Holder
and its affiliates
of more than 9.99%
of the outstanding shares
of Common Stock.
For purposes
of the proviso
to the immediately
preceding
sentence,
beneficial
ownership shall
be determined
 in  accordance
with  Section 
13(d) of the Securities
 Exchange
Act 
of 1934,  as amended
 (the “Exchange
 Act”),
 and 
Regulations
 13D-G 
thereunder,
 except
 as 
otherwise provided
in clause
(1)
of such
proviso, provided,
further,
however,
that the limitations
on conversion
may be waived
by the
Holder upon,
at the
election
of the Holder,
not less
than 61 days’
prior notice
to the Borrower,
and the
provisions
of the conversion
limitation
shall continue to
apply until
such 61st
day (or
such later
date,
as determined
by the Holder,
as may
be specified
in such
notice of waiver).
The number of
shares
of Common Stock
to be issued
upon each
conversion
of this Note
shall be
determined
by dividing the Conversion
Amount (as
defined below)
by the applicable
Conversion
Price
then in
effect on
the date
specified
in the notice
of conversion,
in the form
attached
hereto
as Exhibit
A (the “Notice
of Conversion”),
delivered
to the Borrower
by the
Holder
in accordance
with Section
1.4 below;
provided
that the Notice
of Conversion
is submitted by
facsimile or e-mail
(or by
other means resulting
in, or reasonably
expected
to result
in, notice)
to the Borrower
before
6:00 p.m., New
York, New
York time on such
conversion
date (the
“Conversion
Date”).
The term “Conversion
Amount” means, with respect
to any
conversion
of this Note,
the sum of
(1) the
principal
amount
of this Note
to be converted
in such
conversion
plus (2) at
the Holder’s
option, accrued
and unpaid
interest, if any,
on such
principal
amount
at the interest
rates
provided
in this Note to
the Conversion
Date,
plus (3) at
the Holder’s
option, Default
Interest,
if any,
on the amounts
referred
to in the immediately
preceding
clauses
(1) and/or
(2) plus
(4) at
the Holder’s
option, any
amounts
owed to
the Holder pursuant
to Sections 1.3 and
1.4(g)
hereof.

    	2

    	 

    

1.2 Conversion
Price.

 

(a)
Calculation
 of  Conversion
 Price.
 The  conversion
 price
 (the “Conversion
Price”)
shall equal
the Variable Conversion
Price (as
defined
herein) (subject
to equitable 
adjustments 
for  stock
 splits,  stock
 dividends 
or  rights
 offerings
 by
the  Borrower
relating
to the Borrower’s
securities
or the securities
of any
subsidiary of
the Borrower,
combinations, recapitalization,
reclassifications,
extraordinary
distributions and
similar events).
The "Variable
Conversion
Price"
shall
mean 55%
multiplied by
the Market
Price
(as
defined herein)
(representing
a discount rate
of 45%). “Market
Price”
means the average
of the lowest three
(3) Trading
Prices
(as defined
below) for
the Common
Stock
during
the ten
(10) Trading
Day period
ending on the
latest complete
Trading Day
prior to the Conversion
Date. “Trading
Price”
means,
for any
security
as of
any date,
the closing
bid price
on the Over-the-Counter
Bulletin
Board,
or applicable
trading market
(the “OTCBB”)
as reported
by a reliable
reporting
service
(“Reporting
Service”)
designated
by the Holder
(i.e. Bloomberg)
or, if
the OTCBB
is not the principal
trading
market
for such
security,
the closing
bid price
of such
security
on the principal
securities
exchange
or trading
market
where such
security
is listed
or traded
or,
if no closing
bid price
of such security
is available
in any
of the foregoing
manners,
the average
of the closing bid prices
of any market
makers for
such security
that are
listed in the “pink
sheets” by the National
Quotation Bureau,
Inc.  If the Trading
Price
cannot be calculated
for such security
on such
date in
the manner
provided
above,
the Trading
Price
shall be
the fair
market
value as
mutually
determined
by the Borrower
and the
holders of
a majority
in interest
of the Notes
being converted
for which
the calculation
of the Trading Price
is required
in order
to determine the Conversion
Price
of such Notes.
“Trading
Day”
shall mean
any day
on which
the Common Stock
is tradable
for any
period on
the OTCBB,
or on the
principal
securities
exchange
or other securities
market
on which the Common
Stock is
then being
traded.

 

(b)
Conversion 
Price
 During
Major 
Announcements.
 Notwithstanding anything
contained
in Section
1.2(a) to
the contrary,
in the event
the Borrower
(i) makes
a public announcement
that it
intends
to consolidate
or merge
with any
other corporation
(other
than a merger
in which
the Borrower
is the surviving
or continuing corporation
and its
capital
stock is unchanged)
or sell
or transfer
all or
substantially all
of the assets
of the Borrower
or (ii)
any person,
group
or entity
(including
the Borrower)
publicly
announces
a tender
offer
to purchase

50%
or more
of the
Borrower’s
Common Stock
(or any
other takeover
scheme)
(the date
of the announcement
referred
to in clause
(i) or
(ii) is
hereinafter
referred
to as
the  “Announcement
Date”),
then the Conversion
Price
shall, effective
upon the Announcement
Date and
continuing through
the Adjusted Conversion
Price
Termination
Date (as
defined
below),
be equal
to the lower of
(x) the Conversion
Price which
would have
been
applicable
for a
Conversion
occurring
on the Announcement
Date and
(y) the Conversion
Price
that would
otherwise be in
effect. From
and after
the Adjusted Conversion
Price Termination
Date,
the Conversion
Price shall
be determined
as set
forth
in this Section
1.2(a).  For
purposes
hereof,
 “Adjusted
Conversion Price
Termination
Date”
shall
mean, with
respect
to any
proposed
transaction
or tender
offer
(or takeover
scheme)
for which
a public announcement
as contemplated
by this Section
1.2(b) has
been made,
the date
upon which
the Borrower
(in
the case
of clause
(i) above)
or the
person, group
or entity
(in the
case of
clause
(ii) above)
consummates
or publicly
announces
the termination
or abandonment
of the proposed
transaction
or tender
offer
(or takeover
scheme)
which caused
this Section
1.2(b) to become
operative.

    	3

    	 

    

1.3  Authorized
 Shares.
 The 
Borrower
 covenants
 that 
during 
the  period
 the conversion
right
exists,
the Borrower
will reserve
from its
authorized
and unissued
Common Stock
a sufficient
number of shares,
free
from preemptive
rights,
to provide for
the issuance of Common
Stock upon the
full conversion of
this Note issued
pursuant to the
Purchase
Agreement.
The Borrower
is required
at all
times to
have
authorized
and reserved
five times
the number of
shares that
is actually
issuable upon
full conversion
of the Note (based
on the Conversion
Price
of the Notes in effect
from time to time)(the
“Reserved
Amount”). The Reserved
Amount shall be increased
from time
to time in accordance
with the Borrower’s
obligations pursuant
to Section

4(g)
of the
Purchase
Agreement.
 The
Borrower
represents
that
upon issuance,
such shares
will be duly
and validly
issued, fully
paid and
non-assessable.
 In
addition, if
the Borrower
shall issue any
securities
or make
any
change
to its capital
structure
which
would change
the number
of shares 
of  Common 
Stock  into 
which  the 
Notes  shall
 be  convertible
 at 
the then  current
Conversion
Price,
the Borrower
shall at
the same time make proper
provision
so that
thereafter there
shall be a sufficient
number of
shares of
Common Stock
authorized
and reserved,
free from
preemptive rights,
for conversion
of the outstanding Notes. The
Borrower
(i) acknowledges
that it has
irrevocably
instructed
its transfer
agent
to issue
certificates
for the
Common Stock
issuable upon conversion
of this Note, and
(ii) agrees
that its issuance
of this Note shall constitute
full authority
to its officers
and agents
who are charged
with the duty of executing
stock certificates
to execute
and issue the necessary
certificates
for shares
of Common Stock
in accordance
with the terms and
conditions of this Note.

 

If,
at any
time the Borrower
does not
maintain
the Reserved
Amount it will
be considered
an Event of
Default under
Section 3.2 of
the Note.

 

1.4 Method
of Conversion.

 

(a)
Mechanics
of Conversion.
 Subject
to Section
1.1, this
Note may
be converted
by the
Holder in
whole or in
part at
any time
from time
to time after
the Issue
Date,
by (A)
submitting to the Borrower
a Notice of Conversion
(by
facsimile,
e-mail
or other reasonable
means of communication
dispatched
on the Conversion
Date prior to
6:00 p.m., New
York, New
York time)
and (B)
subject
to Section
1.4(b),
surrendering
this Note at the principal
office of the Borrower.

 

(b)
Surrender
of Note
Upon Conversion.
 Notwithstanding anything
to the contrary
set forth
herein, upon
conversion
of this Note
in accordance
with the terms
hereof,
the Holder shall
not be required
to physically
surrender
this Note to
the Borrower
unless the
entire unpaid
principal
amount of
this Note is
so converted.
The Holder
and
the Borrower
shall maintain
records
showing the
principal
amount so converted
and the dates
of such
conversions
or shall use
such other
method,
reasonably
satisfactory
to the Holder
and the
Borrower,
so as not
to require
physical
surrender
of this Note
upon each
such conversion.
 In the event
of any
dispute or discrepancy,
such records
of the Borrower
shall, prima
facie,
be controlling
and determinative
in the absence
of manifest
error. Notwithstanding
the foregoing,
if any
portion
of this Note
is converted
as aforesaid,
the Holder
may not transfer
this Note unless
the Holder
first
physically
surrenders
this Note to the
Borrower,
whereupon
the Borrower
will forthwith
issue and
deliver upon
the order
of the Holder
a new Note of
like tenor, registered
as the Holder
(upon payment
by the Holder
of any
applicable
transfer
taxes)
may request,
representing
in the aggregate
the remaining
unpaid principal
amount of
this Note. The
Holder and
any assignee,
by acceptance
of this Note, acknowledge
and agree
that, by reason
of the provisions
of this paragraph,
following

    	4

    	 

    

conversion
of a
portion of
this Note,
the unpaid
and unconverted
principal
amount of
this Note represented
by this Note
may be
less than the
amount stated
on the face
hereof.

 

(c)
Payment
of Taxes.
 The Borrower
shall not
be required
to pay
any
tax which
may be payable
in respect
of any
transfer
involved in
the issue and
delivery
of shares
of Common Stock
or other securities
or property
on conversion
of this Note in a name
other than that
of the Holder (or
in street
name),
and the
Borrower
shall not
be required
to issue or
deliver any
such shares
or other
securities
or property
unless
and until
the person
or persons
(other
than the Holder
or the custodian
in whose street
name such
shares are
to be held
for the Holder’s account)
requesting
the issuance
thereof
shall have
paid to the Borrower
the amount
of any
such tax
or shall have
established to the
satisfaction of
the Borrower
that such
tax has
been paid.

 

(d)
Delivery
of Common
Stock
Upon Conversion.
 Upon receipt
by the Borrower
from the
Holder of
a facsimile
transmission
or e-mail
(or other
reasonable
means
of communication)
of a Notice
of Conversion
meeting the
requirements
for conversion
as provided
in this Section
1.4, the Borrower
shall issue and
deliver
or cause to
be issued
and delivered
to or upon the
order
of the Holder
certificates
for
the Common
Stock
issuable upon such
conversion within
three (3)
business
days
after
such receipt
(the “Deadline”)
(and, solely
in the case
of conversion
of the entire
unpaid principal
amount hereof,
surrender
of this Note)
in accordance
with the terms hereof
and the Purchase
Agreement.

 

(e)
Obligation
of Borrower
to Deliver
Common Stock.
 Upon receipt
by the Borrower
of a Notice
of Conversion,
the Holder shall
be deemed
to be the holder
of record
of the Common Stock
issuable upon
such conversion,
the outstanding
principal
amount and
the amount
of accrued
and unpaid
interest on
this Note shall
be reduced
to reflect
such conversion,
and, unless
the Borrower
defaults on
its obligations
under this Article
I, all
rights
with respect
to the portion
of this Note being
so converted
shall
forthwith
terminate except
the right
to receive
the Common
Stock or other
securities,
cash or
other assets,
as herein
provided,
on such conversion.
If the Holder
shall have
given
a Notice of Conversion
as provided
herein,
the Borrower’s
obligation to
issue and deliver
the certificates
for Common
Stock shall
be absolute and
unconditional,
irrespective
of the absence
of any
action
by the Holder
to enforce
the same,
any waiver
or consent with respect
to any provision
thereof, the recovery
of any judgment
against
any person
or any
action
to enforce
the same,
any
failure
or delay
in the enforcement
of any other
obligation
of the Borrower
to the holder
of record,
or any
setoff,
counterclaim,
recoupment,
limitation or
termination,
or any
breach
or alleged
breach
by the Holder
of any obligation
to the Borrower,
and irrespective
of any other
circumstance
which might
otherwise limit such
obligation of the
Borrower
to the Holder
in connection
with such conversion.
The Conversion
Date specified
in the Notice
of Conversion
shall be
the Conversion
Date so
long as the Notice of Conversion
is received by
the Borrower
before
6:00 p.m., New York, New
York time, on such
date.

 

(f)
 Delivery
 of 
Common  Stock
 by 
Electronic
 Transfer.
 In 
lieu  of delivering
physical
certificates
representing
the Common
Stock
issuable upon
conversion, provided
 the  Borrower
is  participating
 in  the 
Depository Trust
 Company
 (“DTC”)
Fast Automated
Securities
Transfer
(“FAST”)
program,
upon request
of the Holder and its compliance
with the provisions
contained
in Section
1.1 and
in this Section
1.4, the Borrower
shall use its best
efforts to cause
its transfer agent
to electronically
transmit
the Common
Stock issuable
upon conversion
to the Holder
by crediting
the account
of Holder’s
Prime
Broker
with DTC through
its Deposit Withdrawal
Agent Commission (“DWAC”)
system.

    	5

    	 

    

(g)
Failure
to Deliver
Common
Stock
Prior
to Deadline.
 Without
in any
way limiting the
Holder’s
right
to pursue
other remedies,
including
actual
damages
and/or equitable
relief,
the parties
agree
that if
delivery
of the Common Stock
issuable upon
conversion of
this Note is
not delivered
by the Deadline
(other
than a
failure
due to
the circumstances
described
in Section
1.3 above,
which
failure
shall
be governed
by such
Section)
the Borrower
shall pay
to the Holder
$2,000 per
day in
cash,
for each
day beyond
the Deadline
that the Borrower
fails
to deliver
such Common
Stock. 
Such
cash amount
shall be paid
to Holder
by the fifth
day of
the month following
the month in
which it
has accrued
or, at
the option
of the Holder
(by
written
notice to
the Borrower
by the
first
day of
the month
following the
month in which
it has accrued),
shall
be added
to the principal
amount
of this Note,
in which
event
interest
shall accrue
thereon in
accordance
with the terms
of this Note and
such additional
principal
amount shall 
be  convertible
 into  Common
Stock 
in accordance
 with  the 
terms  of 
this  Note. 
The Borrower
agrees
that the right
to convert
is a valuable
right to the Holder.
 The damages
resulting from
a failure,
attempt
to frustrate,
interference
with such
conversion
right
are difficult
if not impossible to qualify.
 Accordingly
the parties
acknowledge
 that the
liquidated damages
provision contained
in this Section 1.4(g)
are justified.

 

1.5  Concerning
 the  Shares.
 The  shares
 of  Common
 Stock
 issuable 
upon conversion
of this Note
may not
be sold or
transferred
unless  (i)
such shares
are
sold pursuant
to an effective
registration
statement
under the Act
or (ii) the Borrower
or its transfer
agent
shall have been
furnished
with an
opinion of  counsel
(which
opinion shall
be in form,
substance
and scope
customary
for opinions
of counsel
in comparable
transactions)
to the effect
that the
shares to be
sold or transferred
may be sold
or transferred
pursuant
to an exemption
from such
registration
or (iii)
such shares
are sold or
transferred
pursuant to
Rule 144
under the Act
(or a successor rule)
(“Rule 144”)
or (iv) such
shares
are transferred
to an
“affiliate”
(as defined
in Rule 144) of the Borrower
who agrees
to sell or otherwise
transfer
the shares
only in accordance
with this Section
1.5 and who
is an
Accredited
Investor
(as defined
in the Purchase
Agreement).
Except
as otherwise
provided
in the Purchase
Agreement
(and subject
to the removal
provisions set
forth
below),
until such
time as the
shares
of Common
Stock issuable
upon conversion
of this Note
have been
registered
under the Act
or otherwise
may be sold pursuant
to Rule
144 without any
restriction
as to
the number
of securities
as of
a particular
date that
can
then be
immediately
sold, each
certificate
for shares
of Common
Stock issuable
upon conversion
of this Note that
has not been so
included in
an effective
registration
statement
or that has not been
sold pursuant to an
effective
registration
statement
or an exemption
that permits
removal
of the legend,
shall bear
a legend
substantially
in the following form,
as appropriate:

 

“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

    	6

    	 

    

PLEDGED
IN CONNECTION
WITH
A BONA
FIDE MARGIN
ACCOUNT
OR OTHER
LOAN
OR FINANCING
ARRANGEMENT
SECURED BY
THE SECURITIES.”

 

The legend
set forth
above shall
be removed
and the Borrower
shall
issue to the Holder
a new
certificate
therefore
free
of any
transfer
legend
if (i)
the Borrower
or its transfer
agent
shall have
received
an opinion
of counsel,
in form,
substance
and scope
customary
for opinions
of counsel
in comparable
transactions,
to the effect
that a
public sale or
transfer
of such Common
Stock may
be made
without registration
under the
Act, which
opinion shall be
accepted
by the Company
so that
the sale or
transfer
is effected
or (ii)
in the case
of the Common
Stock issuable
upon conversion
of this Note,
such
security
is registered
for sale
by the
Holder under
an effective
registration
statement
filed
under the
Act
or otherwise
may be
sold pursuant
to Rule

144
without any
restriction
as to
the number
of securities
as of
a particular
date that
can
then be immediately
sold.  In the
event that
the Company
does not accept
the opinion of counsel
provided
by the Buyer
with respect
to the transfer
of Securities
pursuant to
an exemption
from registration,
such as
Rule 144 or Regulation
S, at
the Deadline,
it will be
considered
an Event
of Default pursuant
to Section 3.2 of
the Note.

 

1.6 Effect
of Certain
Events.

 

(a)
Effect of
Merger,
Consolidation,
Etc.  At
the option
of the Holder,
the sale,
conveyance
or disposition of
all or
substantially
all of
the assets
of the Borrower,
the effectuation
by the Borrower
of a transaction
or series
of related
transactions
in which
more than

50%
of the
voting power
of the
Borrower
is disposed
of, or
the consolidation,
merger
or other business
combination
of the Borrower
with or into
any
other Person
(as
defined
below)
or Persons
when the
Borrower
is not the
survivor shall
either: 
(i) be deemed
to be an
Event
of Default (as
defined
in Article
III) pursuant
to which
the Borrower
shall be required
to pay to
the Holder upon the
consummation
of and as
a condition
to such
transaction
an amount
equal
to the Default Amount (as
defined
in Article III)
or (ii) be treated
pursuant to Section
1.6(b) hereof.
“Person”
shall mean
any individual,
corporation,
limited liability
company,
partnership,
association,
trust or other
entity or
organization.

 

(b)
Adjustment Due
to Merger,
Consolidation,
Etc.  If,
at any
time when this
Note is issued
and outstanding
and prior
to conversion
of all
of the Notes,
there shall
be any
merger, 
consolidation, 
exchange
of shares,  recapitalization,
 reorganization,
 or other similar
event,
as a result
of which
shares
of Common Stock
of the Borrower
shall be changed
into the same or
a different
number of shares
of another
class
or classes
of stock or securities
of the Borrower
or another
entity,
or in case
of any
sale or conveyance
of all
or substantially
all of
the assets
of the Borrower
other than
in connection
with a plan
of complete
liquidation of the Borrower,
then the Holder
of this Note shall
thereafter
have the right
to receive
upon conversion
of this Note,
upon the basis
and upon
the terms
and conditions
specified
herein and
in lieu
of the shares of
Common Stock
immediately
theretofore
issuable upon conversion,
such stock, securities
or assets
which the Holder
would have
been entitled
to receive
in such
transaction
had this Note been converted
in full immediately
prior to such transaction
(without regard
to any limitations
on conversion
set forth
herein),
and in
any such
case
appropriate
provisions shall
be made with respect
to the rights
and interests
of the Holder of
this Note to
the end that
the provisions hereof
(including,
without limitation, provisions for
adjustment of the Conversion
Price
and of the
number of shares
issuable upon conversion
of the Note) shall
thereafter
be applicable,
as nearly
as may be
practicable
in relation to any
securities
or assets thereafter

    	7

    	 

    

deliverable
upon the
conversion
hereof.
 The
Borrower
shall
not affect
any transaction
described
in this Section
1.6(b) unless
(a) it
first
gives,
to the
extent
practicable,
thirty (30)
days
prior written
notice (but
in any
event
at least
fifteen
(15)
days
prior
written
notice) of
the record
date of
the special
meeting
of shareholders
to approve,
or if there
is no such
record
date,
the consummation 
of,  such
 merger,
 consolidation,
 exchange
of  shares,
 recapitalization,
reorganization
or other
similar
event
or sale
of assets
(during which
time the Holder
shall be entitled
to convert
this Note)
and (b)
the resulting successor
or acquiring
entity (if
not the Borrower)
assumes
by written
instrument the
obligations
of this Section
1.6(b). The
above provisions
shall similarly apply
to successive
consolidations,
mergers,
sales, transfers
or share exchanges.

 

(c)
Adjustment Due
to Distribution.
 If
the Borrower
shall declare
or make any
distribution of
its assets
(or rights
to acquire
its assets)
to holders
of Common
Stock
as a dividend,
stock repurchase,
by way
of return
of capital or otherwise
(including
any dividend
or distribution to the Borrower’s
shareholders
in cash or shares
(or rights
to acquire shares)
of capital stock
of a subsidiary
(i.e., a
spin-off))
(a “Distribution”),
then the
Holder of this Note shall
be entitled,
upon any
conversion
of this Note
after
the date
of record
for
determining
shareholders
entitled to such
Distribution, to receive
the amount of
such assets
which would have
been payable
to the Holder
with respect
to the shares
of Common
Stock issuable
upon such conversion
had such
Holder been
the holder of such
shares of Common
Stock on
the record
date for
the determination
of shareholders
entitled to such
Distribution.

 

(d)
Adjustment Due
to Dilutive Issuance.
 If,
at any
time when
any
Notes are issued
and outstanding,
the Borrower
issues or
sells, or
in accordance
with this Section
1.6(d) hereof
is deemed
to have
issued or
sold, any
shares
of Common
Stock for
no consideration
or for
a consideration
per share
(before
deduction
of reasonable
expenses
or commissions or underwriting
discounts or
allowances
in connection
therewith) less
than
the Conversion
Price
in effect
on the date
of such
issuance
(or deemed
issuance)
of such
shares
of Common
Stock
(a “Dilutive
Issuance”),
then immediately
upon the Dilutive Issuance,
the Conversion
Price
will be reduced
to the amount
of the
consideration
per share
received
by the
Borrower
in such
Dilutive Issuance.

 

The Borrower
shall be deemed
to have issued
or sold
shares of Common
Stock
if the Borrower
in any
manner
issues or
grants
any warrants,
rights
or options (not
including employee
stock
option plans),
whether
or not immediately
exercisable,
to subscribe
for or to purchase
Common Stock
or other securities
convertible into
or exchangeable
for Common Stock
(“Convertible
Securities”)
(such
warrants,
rights
and options
to purchase
Common Stock
or Convertible Securities
are hereinafter
referred
to as
“Options”) and
the price per
share for
which Common
Stock
is issuable upon
the exercise
of such
Options is less
than the
Conversion Price
then in
effect,
then the
Conversion
Price
shall be
equal
to such
price
per share.
For purposes
of the preceding
sentence,
the “price
per share
for which
Common Stock
is issuable upon the exercise
of such
Options” is determined
by dividing (i) the total
amount, if any,
received
or receivable
by the Borrower
as consideration
for the
issuance
or granting of
all such
Options, plus the minimum
aggregate
amount of
additional
consideration,
if any,
payable
to the Borrower
upon the exercise
of all
such Options,
plus, in the case
of Convertible
Securities
issuable upon the exercise
of such Options,
the minimum aggregate
amount of additional
consideration
payable
upon the conversion
or exchange
thereof
at the time
such Convertible
Securities
first
become
convertible or
exchangeable,
by (ii) the
maximum
total
number of
shares of Common
Stock issuable upon the exercise
of all such Options (assuming
full conversion
of

    	8

    	 

    

Convertible
Securities,
if applicable).
 No further
adjustment
to the Conversion
Price
will be made
upon the actual
issuance
of such
Common Stock
upon the exercise
of such Options or
upon the conversion or
exchange
of Convertible
Securities
issuable upon exercise
of such Options.

 

Additionally,
the Borrower
shall be
deemed
to have
issued or
sold shares
of Common
Stock
if the
Borrower
in any
manner
issues or
sells any
Convertible
Securities,
whether 
or  not  immediately
convertible
 (other
 than 
where 
the  same
 are 
issuable 
upon  the exercise
of Options),
and
the price per
share
for which
Common Stock
is issuable upon
such conversion
or exchange
is less
than the Conversion
Price
then in
effect,
then the Conversion
Price
shall be equal
to such price
per share.
 For
the purposes of the preceding
sentence,
the “price
per
share for
which Common
Stock is
issuable upon
such conversion
or exchange”
is determined
by dividing
(i) the
total amount,
if any,
received
or receivable
by the Borrower
as consideration
for the issuance
or sale of all
such Convertible
Securities,
plus the minimum aggregate
amount  of additional
 consideration,
 if any,
 payable
to  the Borrower
upon  the conversion
or exchange
thereof
at the time such
Convertible Securities
first become
convertible
or exchangeable,
by (ii) the maximum
total number
of shares of Common
Stock issuable
upon the conversion
or exchange
of all
such Convertible
Securities.
No further
adjustment
to the Conversion
Price will
be made upon the actual
issuance
of such
Common Stock
upon conversion
or exchange
of such
Convertible
Securities.

 

(e)
Purchase
Rights. 
If,
at any
time when
any
Notes
are issued
and outstanding,
the Borrower
issues any
convertible
securities
or rights
to purchase
stock, warrants,
securities
or other
property
(the “Purchase
Rights”)
pro rata
to the record
holders of
any class
of Common  Stock,
 then 
the Holder of this 
Note will  be entitled
 to  acquire,
 upon  the terms
applicable to
such Purchase
Rights,
the aggregate
Purchase
Rights
which such
Holder could
have acquired
if such Holder
had held
the number of shares
of Common Stock
acquirable upon complete
conversion of this Note (without
regard
to any limitations
on conversion contained
herein) immediately
before
the date
on which
a record
is taken
for
the grant,
issuance
or sale
of such Purchase
Rights
or, if no
such record
is taken,
the date as
of which the record
holders of Common
Stock are
to be determined
for the
grant,
issue or sale
of such Purchase
Rights.

 

(f)
Notice of Adjustments.
 Upon the occurrence
of each
adjustment
or readjustment
of the Conversion
Price
as a
result of
the events
described
in this
Section
1.6, the Borrower,
at its
expense,
shall promptly
compute
such adjustment
or readjustment
and prepare
and furnish
to the Holder
a certificate
setting
forth
such adjustment
or readjustment
and showing
in detail
the facts
upon which
such adjustment
or readjustment
is based.
 The Borrower
shall, upon the
written
request
at any
time of the
Holder,
furnish
to such
Holder
a like certificate
setting forth
(i) such
adjustment
or readjustment, (ii)
the Conversion Price
at the time in effect
and (iii)
the number
of shares
of Common Stock
and the
amount, if
any,
of other
securities
or property
which at
the time would be
received
upon conversion
of the Note.

 

1.7 Trading
Market
Limitations. 
Unless permitted
by the
applicable
rules
and regulations
of the principal
securities
market
on which the
Common Stock
is then
listed or
traded, in no event
shall the Borrower
issue upon conversion
of or otherwise
pursuant to this Note and
the other Notes
issued pursuant
to the Purchase
Agreement
more than
the maximum number
of shares
of Common
Stock
that the
Borrower
can issue
pursuant
to any
rule of
the principal
United States
securities
market
on which
the Common Stock
is then
traded
(the “Maximum
Share
Amount”),
which shall
be 9.99%
of the total
shares outstanding
on the Closing Date
(as defined
in the Purchase
Agreement),
subject to equitable
adjustment from
time to time

    	9

    	 

    

for
stock splits,
stock
dividends,
combinations,
capital
reorganizations
and similar
events
relating to
the Common
Stock
occurring
after
the date
hereof.
 Once
the Maximum
Share
Amount has been
issued, if
the Borrower
fails
to eliminate
any
prohibitions under
applicable
law or
the rules
or regulations
of any
stock
exchange,
interdealer
quotation system
or other self-regulatory
organization
with jurisdiction
over the
Borrower
or any
of its
securities
on the Borrower’s
ability to issue shares
of Common Stock
in excess
of the Maximum Share
Amount, in lieu of any
further
right
to convert this Note,
this will be considered
an Event of Default
under Section
3.3 of the Note.

 

1.8 Status
as Shareholder.
 Upon submission
of a Notice
of Conversion
by a Holder,
(i) the
shares
covered
thereby
(other
than
the shares,
if any,
which cannot
be issued because
their issuance
would exceed
such Holder’s
allocated
portion of the
Reserved
Amount or Maximum
Share
Amount) shall
be deemed
converted
into shares
of Common
Stock
and (ii)
the Holder’s rights
as a
Holder of
such converted
portion of
this Note shall cease
and terminate,
excepting
only the right
to receive
certificates
for such
shares
of Common Stock
and to
any remedies
provided herein
or otherwise available
at law or in equity
to such Holder because
of a failure by
the Borrower
to comply
with the terms of this Note. Notwithstanding
the foregoing,
if a Holder has
not received
certificates
for all
shares
of Common Stock
prior to the tenth
(10th) business
day after
the expiration
of the Deadline
with respect
to a conversion
of any
portion of this Note for
any reason,
then (unless
the Holder otherwise
elects
to retain
its status as a holder
of Common
Stock
by so notifying
the Borrower)
the Holder
shall
regain
the rights
of a Holder
of this Note with respect to such
unconverted
portions of this Note and
the Borrower
shall, as soon as
practicable,
return
such unconverted
Note to
the Holder or,
if the Note has
not been
surrendered,
adjust its
records
to reflect
that
such portion
of this Note has
not been
converted.
In all cases,
the Holder shall retain
all of its rights
and remedies
(including,
without limitation, (i) the right
to receive
Conversion
Default
Payments
pursuant
to Section
1.3 to the extent
required thereby
for such
Conversion
Default and
any subsequent
Conversion
Default
and (ii)
the right
to have the Conversion
Price with
respect
to subsequent
conversions
determined
in accordance
with Section 1.3)
for the Borrower’s
failure
to convert
this Note.

 

1.9 Prepayment.
 Notwithstanding
anything
to the contrary
contained
in this Note,
at any
time during
the period
beginning
on the Issue
Date and
ending
on the date
which is
thirty (30)
days
following the issue
date,
the Borrower
shall have
the right,
exercisable
on not less
than three
(3) Trading
Days
prior written
notice to
the Holder
of the Note
to prepay
the outstanding Note
(principal
and accrued
interest),
in full,
in accordance
with this Section
1.9.  Any notice
of prepayment
hereunder
(an “Optional
Prepayment
Notice”) shall
be delivered
to the Holder of the Note
at its registered
addresses
and shall state:
(1) that
the Borrower
is exercising
its right to prepay
the Note,
and (2)
the date
of prepayment
which shall
be not more
than three
(3) Trading
Days from
the date of the Optional
Prepayment
Notice. On the date fixed
for prepayment
(the “Optional
Prepayment
Date”),
the Borrower
shall
make payment
of the Optional
Prepayment
Amount (as
defined
below)
to or upon
the order
of the Holder
as specified
by the
Holder in writing
to the Borrower
at least one (1)
business day
prior
to the Optional Prepayment
Date. If
the Borrower
exercises
its right
to prepay
the Note,
the Borrower
shall
make payment
to the Holder of an
amount in
cash (the
“Optional
Prepayment
Amount”) equal
to 115%,
multiplied by
the sum of: (w) the then
outstanding principal
amount of this Note plus (x)
accrued and unpaid
interest on
the unpaid
principal
amount of
this Note to the
Optional Prepayment
Date plus
(y) Default
Interest,
if any,
on the amounts
referred
to in clauses
(w) and
(x)
plus (z)
any amounts
owed to
the Holder pursuant
to Sections
1.3 and
1.4(g) hereof.
If the Borrower
delivers
an Optional
Prepayment
Notice
and fails
to pay
the Optional
Prepayment
Amount due
to the Holder

    	10

    	 

    

of the
Note within two
(2) business
days
following
the Optional
Prepayment
Date,
the Borrower
shall forever
forfeit
its right to prepay
the Note pursuant
to this Section 1.9.

 

Notwithstanding
anything
to the contrary
contained
in this Note,
at any
time during the
period beginning
on the date
which is
thirty-one
(31) days
following
the issue date
and ending
on the date
which is
sixty
(60) days
following the issue
date,
the Borrower
shall have
the right,
exercisable
on not less
than three
(3) Trading Days
prior written
notice to the
Holder of the Note
to prepay
the outstanding
Note (principal
and accrued
interest), in
full, in
accordance
with this Section
1.9. Any Optional Prepayment
Notice shall be delivered
to the Holder of the Note at its registered
addresses
and shall state:
(1) that the Borrower
is exercising its right
to prepay the
Note, and (2)
the date of
prepayment
which shall
be not more than
three (3) Trading
Days
from the
date of
the Optional
Prepayment
Notice. On the
Optional Prepayment
Date,
the Borrower
shall make payment
of the Second
Optional Prepayment
Amount (as defined
below) to or
upon the order
of the Holder
as specified
by the Holder
in writing to
the Borrower
at least
one (1) business day
prior to the Optional Prepayment
Date. 
If the Borrower
exercises
its right
to prepay the
Note, the
Borrower
shall make
payment
to the Holder
of an amount
in cash (the
“Second
Optional Prepayment
Amount”) equal
to 120%, multiplied by the sum of:
(w) the then outstanding
principal
amount of this Note plus (x)
accrued and unpaid
interest on the unpaid principal
amount of this
Note to the Optional Prepayment
Date plus (y)
Default Interest,
if any,
on the amounts referred to in
clauses
(w) and (x)
plus (z)
any amounts owed
to the Holder pursuant
to Sections
1.3 and
1.4(g) hereof. If the
Borrower
delivers
an Optional
Prepayment
Notice and
fails to
pay the
Second Optional
Prepayment
Amount due to the
Holder of the
Note within two (2) business days
 following the 
Optional  Prepayment
 Date,
 the  Borrower
shall forever
forfeit its right
to prepay
the Note pursuant
to this Section 1.9.

 

Notwithstanding
anything
to the contrary
contained
in this Note,
at any
time during the
period
beginning on
the date
which is
sixty-one
(61) days
following
the issue date
and ending on the date
which is ninety
(90) days
following the issue date,
the Borrower
shall have the
right,
exercisable
on not less
than three
(3) Trading
Days
prior written
notice to the Holder
of the Note to prepay
the outstanding Note (principal
and accrued
interest), in full,
in accordance
with this Section 1.9. Any
Optional Prepayment
Notice shall be delivered
to the Holder of the Note at its registered
addresses
and shall state:
(1) that the Borrower
is exercising
its right to
prepay the
Note,
and (2)
the date
of prepayment
which shall
be not more
than three
(3) Trading
Days
from the
date of
the Optional
Prepayment
Notice. 
On the Optional
Prepayment
Date,
the Borrower
shall make
payment
of the Third
Optional Prepayment
Amount (as
defined
below) to or
upon the order
of the
Holder as
specified
by the
Holder in writing
to the Borrower
at least one (1) business
day prior
to the Optional Prepayment
Date. If the
Borrower
exercises
its right to prepay
the Note, the
Borrower
shall make
payment
to the Holder
of an amount
in cash (the
“Third Optional
Prepayment
Amount”) equal
to 125%, multiplied by the sum of:
(w) the then
outstanding principal
amount of
this Note plus (x)
accrued and
unpaid interest
on the unpaid
principal
amount of this Note to the Optional
Prepayment
Date plus (y)
Default
Interest, if any,
on the amounts referred to in
clauses
(w) and (x)
plus (z)
any amounts
owed to the Holder pursuant
to Sections
1.3 and
1.4(g) hereof.
If the Borrower
delivers
an Optional
Prepayment
Notice and fails
to pay the Third
Optional Prepayment
Amount due to the Holder of the Note within  two
 (2) 
business days
 following
the  Optional
 Prepayment
 Date,
 the  Borrower
 shall forever
forfeit
its right to prepay
the Note
pursuant
to this Section 1.9.

    	11

    	 

    

Notwithstanding
any
to the contrary
stated
elsewhere
herein,
at any
time during the
period beginning
on the date
that is
ninety-one
(91) day from
the issue date
and ending
one hundred  twenty
(120) days following 
the  issue 
date, 
the Borrower
shall  have
 the  right,
exercisable
on not less
than
three (3)
Trading Days
prior written
notice to the
Holder of
the Note to prepay
the outstanding
Note (principal
and accrued
interest),
in full, in
accordance
with this Section
1.9. Any Optional
Prepayment
Notice shall
be delivered
to the Holder
of the Note at its registered
addresses
and shall state:
(1) that
the Borrower
is exercising
its right to prepay
the Note,
and (2)
the date of
prepayment
which shall
be not more than
three (3) Trading
Days from
the date of the
Optional Prepayment
Notice. On the Optional
Prepayment
Date,
the Borrower
shall make payment
of the Fourth
Optional Prepayment
Amount (as
defined
below) to or upon the
order of the Holder
as specified
by the
Holder
in writing to
the Borrower
at least
one (1) business
day prior
to the Optional
Prepayment
Date.
If the Borrower
exercises
its right
to prepay the Note,
the Borrower
shall make payment
to the Holder of
an amount
in cash (the
“Fourth
Optional Prepayment
Amount”)
equal
to 130%,
multiplied by
the sum of:
(w) the
then outstanding principal
amount of this Note plus (x)
accrued and unpaid
interest on the unpaid principal
amount of this Note to the Optional Prepayment
Date plus (y) Default
Interest, if any,
on the amounts referred to in
clauses
(w) and (x)
plus (z) any
amounts owed to the Holder
pursuant
to Sections 1.3 and
1.4(g) hereof.
If the Borrower
delivers
an Optional
Prepayment
Notice and
fails
to pay the
Fourth
Optional Prepayment
Amount due to the
Holder of the
Note within  two  (2)
 business days 
following the Optional
 Prepayment
 Date,
 the Borrower
 shall forever
forfeit its right
to prepay
the Note
pursuant
to this Section 1.9.

 

Notwithstanding
any
to the contrary
stated
elsewhere
herein,
at any
time during the
period beginning
on the date
that is one hundred
twenty-one
(121) day from
the issue date
and ending
one hundred
fifty
(150)
days following
the issue date,
the Borrower
shall have
the right,
exercisable
on not less than
three (3)
Trading
Days prior
written
notice to
the Holder
of the Note to prepay
the outstanding Note (principal
and accrued
interest), in full,
in accordance
with this Section
1.9.  Any Optional
Prepayment
Notice shall
be delivered
to the Holder
of the Note
at its registered
addresses
and shall
state:
(1) that
the Borrower
is exercising
its right
to prepay
the Note, and
(2) the
date of
prepayment
which shall
be not more
than three
(3) Trading
Days from
the date of the
Optional Prepayment
Notice. On
the Optional Prepayment
Date,
the Borrower
shall make
payment
of the Fifth
Optional Prepayment
Amount (as
defined
below) to or upon
the order
of the
Holder as
specified
by the
Holder in
writing to the
Borrower
at least one
(1) business
day prior to the Optional
Prepayment
Date. If the Borrower
exercises
its right to prepay
the Note, the
Borrower
shall make payment
to the Holder
of an amount
in cash (the
“Fifth Optional
Prepayment
Amount”) equal
to 135%,
multiplied by the
sum of:
(w) the
then outstanding
principal
amount of this Note plus (x)
accrued and
unpaid interest
on the unpaid principal
amount of this Note to the
Optional Prepayment
Date plus (y) Default
Interest, if any,
on the amounts referred
to in clauses
(w) and
(x)
plus (z) any
amounts owed
to the Holder
pursuant to Sections
1.3 and 1.4(g)
hereof.
 If the
Borrower
delivers an
Optional Prepayment
Notice and fails
to pay the Fifth
Optional Prepayment
Amount due to the Holder of
the Note within two
(2) business days
following the Optional Prepayment
Date, the Borrower
shall forever
forfeit
its right to prepay
the Note pursuant
to this Section 1.9.

 

Notwithstanding
any
to the contrary
stated
elsewhere
herein,
at any
time during the
period beginning
on the
date that
is one
hundred
fifty-one
(151) day
from the issue
date and ending
one hundred
eighty
(180) days
following the
issue date,
the Borrower
shall have
the right,
exercisable
on not less
than
three (3)
Trading Days
prior written
notice to
the Holder
of the Note to
prepay the
outstanding Note
(principal
and accrued
interest),
in full,
in accordance
with this

    	12

    	 

    

Section
1.9.  Any Optional
Prepayment
Notice shall
be delivered
to the Holder
of the Note
at its registered
addresses
and shall
state:
(1) that
the Borrower
is exercising
its right
to prepay
the Note,
and (2)
the date
of prepayment
which shall
be not more
than three
(3) Trading
Days
from the date of the Optional
Prepayment
Notice. On the Optional
Prepayment
Date, the
Borrower
shall make
payment
of the
Sixth Optional Prepayment
Amount (as
defined
below) to
or upon the order
of the
Holder as
specified
by the
Holder in
writing to the
Borrower
at least one
(1) business
day prior
to the Optional
Prepayment
Date.
If the Borrower
exercises
its right
to prepay
the Note, the
Borrower
shall make
payment
to the Holder
of an
amount in
cash (the
“Sixth
Optional Prepayment
Amount”) equal
to 140%,
multiplied by the
sum of:
(w)
the then
outstanding principal
amount of this
Note plus (x)
accrued and
unpaid interest
on the unpaid principal
amount of this Note to
the Optional
Prepayment
Date plus (y)
Default
Interest, if any,
on the amounts
referred
to in clauses
(w) and
(x)
plus (z)
any amounts
owed to
the Holder
pursuant
to Sections 1.3 and
1.4(g)
hereof.
 If the
Borrower
delivers an
Optional Prepayment
Notice and fails
to pay the
Sixth
Optional Prepayment
Amount due to
the Holder
of the
Note within two
(2) business days
following the Optional Prepayment
Date, the Borrower
shall forever
forfeit
its right to prepay
the Note pursuant
to this Section 1.9.

 

After
the expiration
of one
hundred eighty
(180)
following the
date of
the Note, the
Borrower
shall have
no right of
prepayment.

 

 

 

ARTICLE
II. 
CERTAIN
COVENANTS

 

2.1 Distributions
on Capital
Stock. 
So long
as the Borrower
shall
have  any
obligation
under this
Note,
the Borrower
shall not
without the Holder’s
written
consent
(a) pay,
declare
or set
apart
for such
payment,
any
dividend
or other
distribution
(whether
in cash, property
or other
securities)
on shares of
capital
stock other
than dividends
on shares of
Common Stock
solely in
the form of
additional
shares
of Common Stock
or (b)
directly
or indirectly
or through
any subsidiary
make any
other payment
or distribution
in respect
of its capital
stock except
for distributions
pursuant to any
shareholders’
rights plan
which is approved
by a
majority
of the Borrower’s
disinterested
directors.

 

2.2 Restriction
on Stock
Repurchases.
 So
long as
the Borrower
shall have
any obligation
under this Note,
the Borrower
shall not
without the Holder’s
written
consent
redeem,
repurchase
or otherwise
acquire
(whether
for cash
or in exchange
for property
or other
securities
or otherwise)
in any
one transaction
or series
of related
transactions
any
shares of
capital stock
of the Borrower
or any
warrants,
rights or
options to purchase
or acquire
any such
shares.

 

2.3 Borrowings.
 So
long as
the Borrower
shall have
any
obligation
under this Note,
the Borrower
shall
not, without the Holder’s
written
consent,
create,
incur,
assume guarantee,
 endorse,
 contingently
agree
 to  purchase
 or  otherwise
 become
 liable 
upon  the obligation
of any
person,
firm,
partnership,
joint venture
or corporation,
except
by the endorsement
of negotiable
instruments
for deposit
or collection,
or suffer
to exist
any liability
for borrowed
money, except
(a) borrowings
in existence
or committed
on the date hereof
and of which
the Borrower
has informed
Holder in
writing prior
to the date
hereof,
(b) indebtedness
to trade creditors
or financial
institutions incurred
in the ordinary
course
of business
or (c) borrowings,
the proceeds
of which shall
be used to
repay this Note.

    	13

    	 

    

2.4 Sale
of Assets. 
So long
as the
Borrower
shall
have any
obligation
under this Note,
the Borrower
shall not,
without the
Holder’s
written
consent,
sell,
lease or
otherwise dispose of
any
significant
portion of
its assets
outside the ordinary
course
of business. Any consent
to the disposition of any
assets may
be conditioned
on a specified
use of the proceeds
of disposition.

 

2.5 Advances
and Loans.
 So
long as
the Borrower
shall have
any
obligation
under this
Note, the
Borrower
shall not,
without the Holder’s
written
consent,
lend money,
give credit
or make
advances
to any
person, firm,
joint venture
or corporation,
including,
without limitation, officers,
directors, employees,
subsidiaries and
affiliates
of the Borrower,
except
loans, credits
or advances
(a) in existence
or committed
on the date hereof
and which
the Borrower
has
informed
Holder in writing
prior
to the date hereof,
(b) made
in the ordinary
course
of business or
(c) not in excess
of $100,000.

 

 

 

ARTICLE
III. 
EVENTS OF DEFAULT

 

If
any
of the following
events of
default (each,
an “Event
of Default”)
shall occur:

 

3.1 Failure
to Pay
Principal
or Interest.
 The
Borrower
fails
to pay
the principal
hereof or interest
thereon
when due on
this Note,
whether
at maturity,
upon acceleration
or otherwise.

 

3.2 Conversion
and the
Shares.
 The
Borrower
fails to
issue shares
of Common Stock
to the Holder
(or announces
or threatens
in writing
that it
will not honor
its obligation
to do so) upon exercise by
the Holder of the conversion
rights of the Holder
in accordance
with the terms of this Note, fails
to transfer
or cause its transfer
agent
to transfer
(issue) (electronically
or in certificated
form)
any certificate
for shares
of Common Stock
issued to the
Holder upon conversion
of or otherwise
pursuant to this Note as
and when required
by this Note, the Borrower
directs
its transfer
agent
not to transfer
or delays,
impairs,
and/or hinders
its transfer
agent in transferring
(or issuing)
(electronically
or in certificated
form)
any certificate
for shares
of Common Stock
to be issued
to the Holder
upon conversion
of or otherwise
pursuant
to this Note as and
when required
by this Note, or fails
to remove (or directs
its transfer agent
not to remove or impairs,
delays,
and/or hinders
its transfer
agent
from removing)
any restrictive
legend
(or
to withdraw
any
stop transfer
instructions
in respect
thereof)
on any certificate
for any shares
of Common Stock
issued to
the Holder upon conversion
of or otherwise pursuant
to this Note as
and when
required
by this
Note (or
makes
any
written
announcement,
statement
or threat that
it does not intend to honor the obligations
described
in this paragraph)
and any such
failure shall
continue uncured
(or any
written
announcement,
statement
or threat
not to honor
its obligations shall
not be rescinded
in writing)
for three
(3) business
days after
the Holder
shall have delivered
a Notice of
Conversion. It is an
obligation
of the Borrower
to remain
current
in its obligations
to its transfer
agent.
It shall
be an event
of default
of this Note,
if a conversion
of this Note is delayed,
hindered or frustrated
due to a balance
owed by the Borrower
to its transfer agent.
If at the option of the Holder, the Holder
advances
any funds to the Borrower’s
transfer
agent
in order
to process
a conversion,
such advanced
funds shall
be paid by
the Borrower
to the Holder within forty
eight
(48) hours
of a demand
from the
Holder.

 

3.3 Breach
of Covenants.
 The Borrower
breaches
any
material
covenant
or other material
term or
condition
contained
in this Note
and any
collateral
documents
including but
not

    	14

    	 

    

limited
to the Purchase
Agreement
and such
breach
continues
for
a period
of ten
(10) days
after written
notice thereof
to the Borrower
from the Holder.

 

3.4 Breach
of Representations
and Warranties.
 Any
representation
or warranty
of the Borrower
made
herein
or in any
agreement,
statement
or certificate
given
in writing
pursuant
hereto or
in connection
herewith (including,
without limitation,
the Purchase
Agreement),
shall be false
or misleading
in any material
respect
when made
and the breach
of which has
(or with the
passage
of time
will have)
a material
adverse
effect
on the rights
of the Holder
with respect
to this Note or the
Purchase
Agreement.

 

3.5 Receiver
or Trustee.
 The
Borrower
or any
subsidiary
of the
Borrower
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.

 

3.6 Judgments.
 Any
money judgment,
writ or
similar process
shall be
entered
or filed
against
the Borrower
or any
subsidiary
of the
Borrower
or any
of its property
or other
assets for
more than
$50,000, and
shall remain
unvacated,
unbonded or unstayed
for a period
of twenty
(20) days
unless otherwise
consented
to by the Holder,
which consent
will not be
unreasonably withheld.

 

3.7 Bankruptcy.
 Bankruptcy,
 insolvency,
 reorganization
 or  liquidation
proceedings
or other
proceedings,
voluntary
or involuntary,
for relief
under
any
bankruptcy
law or any
law for the relief
of debtors shall
be instituted by or against
the Borrower
or any subsidiary
of the
Borrower.

 

3.8 Delisting
of Common Stock.
The Borrower
shall fail
to maintain
the listing
of the Common
Stock
on at
least one
of the OTCBB
or an
equivalent
replacement
exchange,
the Nasdaq
National
Market,
the Nasdaq
SmallCap
Market,
the New York
Stock Exchange,
or the American Stock
Exchange.

 

3.9 Failure
to Comply
with the Exchange
Act.  The
Borrower
shall fail
to comply
with the reporting
requirements
of the Exchange
Act; and/or
the Borrower
shall cease
to be subject to the
reporting
requirements
of the Exchange
Act.

 

3.10 Liquidation.
 Any
dissolution, liquidation,
or winding up
of Borrower
or any
substantial portion
of its business.

 

3.11 Cessation
of Operations.
 Any
cessation
of operations
by Borrower
or Borrower
admits it
is otherwise
generally
unable
to pay its
debts as
such debts
become due,
provided, however,
that any
disclosure
of the Borrower’s
ability
to continue
as a “going
concern”
shall not be an admission
that the Borrower
cannot pay
its debts as they
become
due.

 

3.12 Maintenance
of Assets.
 The  failure
 by 
Borrower
 to  maintain
 any
material
intellectual
property
rights,
personal,
real
property
or other
assets
which are
necessary
to conduct its business
(whether
now or in the future).

 

3.13Financial
Statement
Restatement.The
 restatement
 of  any
financial
statements
filed
by the Borrower
with the SEC
for
any date
or period
from
two years
prior to
the

    	15

    	 

    

Issue
Date of
this Note and
until this Note
is no longer
outstanding,
if the result
of such restatement
would, by comparison
to the unrestated
financial
statement,
have constituted
a material
adverse
effect
on the rights
of the Holder
with respect
to this Note or
the Purchase
Agreement.

 

3.14Reverse
Splits.The  Borrower
 effectuates
 a  reverse
 split  of 
its

Common
Stock without
twenty
(20) days
prior
written
notice to the
Holder.

 

 

3.15 Replacement
of Transfer
Agent. In
the event
that the
Borrower
proposes to replace
its transfer
agent,
the Borrower
fails to
provide,
prior to the
effective date
of such replacement,
a fully
executed
Irrevocable
Transfer
Agent
Instructions
in a form
as initially
delivered
pursuant
to the Purchase
Agreement
(including but
not limited
to the provision
to irrevocably
reserve
shares
of Common
Stock
in the
Reserved
Amount) signed
by the successor transfer
agent
to Borrower
and the Borrower.

 

 

 

3.16 Cross-Default.
 Notwithstanding
anything
to the contrary
contained
in this Note or
the other
related
or companion
documents,
a breach
or default
by the Borrower
of any
covenant
or other
term
or condition
contained
in any
of the Other
Agreements,
after
the passage
of all applicable
notice and
cure
or grace
periods,
shall, at the
option of the Holder,
be considered
a default
under this Note
and the
Other Agreements,
in which
event
the Holder shall
be entitled
(but in
no event
required)
to apply
all rights
and remedies
of the
Holder
under
the terms
of this Note  and
 the  Other
 Agreements
 by reason
 of  a 
default
 under 
said  Other
 Agreement
 or hereunder.
“Other
Agreements”
means, collectively,
all agreements
and instruments
between, among
or by:
(1) the Borrower,
and, or for
the benefit
of, (2)
the Holder and
any
affiliate of
the Holder, including,
without limitation,
promissory
notes; provided,
however,
the term
“Other Agreements”
shall not
include
the related
or companion
documents
to this
Note. Each
of the loan transactions
will be cross-defaulted
with each
other loan
transaction
and with
all other
existing
and future
debt of
Borrower
to the Holder.

 

Upon the
occurrence
and during
the continuation
of any
Event of
Default specified
in Section 3.1 (solely
with respect
to failure
to pay the
principal
hereof
or interest
thereon
when due
at the Maturity
Date),
the Note shall
become immediately
due and payable
and the
Borrower
shall
pay to the
Holder, in
full satisfaction
of its obligations
hereunder,
an amount
equal
to the Default
Sum (as
defined
herein). 
UPON THE OCCURRENCE
AND DURING THE
CONTINUATION
OF  ANY  EVENT
 OF  DEFAULT
 SPECIFIED
 IN  SECTION
 3.2,  THE 
NOTE  SHALL
BECOME
IMMEDIATELY
DUE AND PAYABLE
AND THE
BORROWER
SHALL PAY
TO THE HOLDER,
IN FULL
SATISFACTION
OF ITS
OBLIGATIONS
HEREUNDER,
AN AMOUNT EQUAL TO:
(Y) THE
DEFAULT
SUM (AS
DEFINED
HEREIN);
MULTIPLIED
BY (Z)
TWO (2).
Upon the occurrence
and during
the continuation
of any
Event
of Default specified
in Sections 3.1
(solely
with respect
to failure to pay
the principal
hereof or interest thereon
when
due on this
Note upon a
Trading Market
Prepayment
Event pursuant
to Section
1.7 or upon acceleration),
3.3, 3.4,
3.6, 3.8, 3.9,
3.11, 3.12, 3.13,
3.14, and/or
3. 15 exercisable
through
the delivery
of written
notice to
the Borrower
by such
Holders (the
“Default
Notice”),
and upon
the occurrence
of an Event
of Default specified
the remaining
sections of Articles
III (other
than failure
to pay the
principal
hereof
or interest
thereon
at the
Maturity
Date
specified
in Section
3,1 hereof),
the Note shall
become immediately
due and
payable
and the
Borrower
shall pay
to the Holder,
in full satisfaction
of its obligations
hereunder, an
amount equal
to the greater

    	16

    	 

    

of
(i) 150%
times the
sum of
(w) the
then outstanding
principal
amount
of this Note
plus (x)
accrued
and unpaid
interest
on the unpaid
principal
amount of this
Note to the date of payment
(the “Mandatory
Prepayment
Date”)
plus (y) Default
Interest, if any,
on the amounts
referred
to in clauses
(w) and/or (x)
plus (z) any
amounts owed to the Holder
pursuant to Sections
1.3 and

1.4(g)
hereof
(the
then outstanding
principal
amount of
this Note to
the date
of payment
plus the amounts
referred
to in clauses
(x),
(y)
and (z)
shall collectively
be known as
the “Default
Sum”) or
(ii) the
“parity
value”
of the Default
Sum to
be prepaid,
where
parity
value means
(a) the highest
number of
shares
of Common Stock
issuable upon conversion
of or
otherwise pursuant
to such Default
Sum in
accordance
with Article
I, treating
the Trading
Day immediately
preceding
the Mandatory
Prepayment
Date as the “Conversion
Date” for
purposes of determining
the lowest
applicable Conversion
Price,
unless the Default
Event arises
as a result
of a breach
in respect 
of  a specific
Conversion 
Date in  which
 case such
 Conversion
 Date shall
 be the Conversion
Date), multiplied
by (b)
the highest
Closing Price
for the
Common Stock
during the
period beginning
on the date
of first
occurrence
of the
Event of
Default and
ending one
day prior
to the Mandatory
Prepayment
Date
(the
“Default
Amount”) and
all other
amounts payable
hereunder 
shall  immediately
become 
due  and 
payable,
 all 
without  demand,
 presentment
 or notice,
all of
which hereby
are
expressly
waived,
together
with all
costs, including,
without limitation,
legal
fees and
expenses,
of collection,
and the Holder
shall be
entitled
to exercise
all other
rights and
remedies
available
at law or
in equity.

 

If
the Borrower
fails
to pay the
Default
Amount within five
(5) business
days
of written
notice that
such amount
is due and
payable,
then the
Holder
shall have
the right
at any
time, so
long as the Borrower
remains
in default
(and so
long and to
the extent
that there
are sufficient
authorized
shares),
to require
the Borrower,
upon written
notice,
to immediately
issue, in
lieu of
the Default
Amount, the number
of shares
of Common Stock
of the Borrower
equal
to the Default
Amount divided by
the Conversion
Price
then in effect.

 

ARTICLE
IV. MISCELLANEOUS

 

4.1 Failure
or Indulgence
Not Waiver.
 No failure
or delay
on the part
of the Holder
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 privileges.
All rights and
remedies
existing
hereunder
are cumulative
to, and not exclusive
of, any
rights
or remedies
otherwise available.

 

4.2 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

    	17

    	 

    

address,
or upon
actual
receipt
of such
mailing,
whichever
shall first
occur.
 The addresses
for such communications
shall be:

 

If
to the Borrower,
to:

 

NYXIO
TECHNOLOGIES
CORPORATION

2156 NE Broadway

Portland,
OR 97232

Attn: GIORGIO
JOHNSON, President/Chief
Executive
Officer
facsimile:

With
a copy
by fax
only to (which
copy
shall not constitute
notice): [enter
name of
law firm]

Attn: [attorney
name] [enter
address line 1] [enter
city, state,
zip]

facsimile:
[enter
fax number]

 

 

 

If
to the Holder:

 

ASHER
ENTERPRISES,
INC.

1
Linden Pl.,
Suite 207

Great
Neck, NY.
11021

Attn: Curt
Kramer, President
facsimile: 516-498-9894

With
a copy
by fax
only to (which
copy
shall not constitute
notice): Naidich
Wurman
Birnbaum
& Maday,
LLP

80 Cuttermill
Road, Suite
410

Great
Neck, NY
11021

Attn: Bernard
S. Feldman,
Esq. facsimile: 516-466-3555

 

4.3 Amendments.
 This Note
and any
provision
hereof
may only
be amended
by an
instrument
in writing
signed
by the Borrower
and the
Holder. 
The term
“Note”
and all
reference
thereto,
as used
throughout
this instrument,
shall mean
this instrument
(and the other
Notes issued
pursuant
to the Purchase
Agreement)
as originally
executed,
or if later
amended
or supplemented,
then as so
amended
or supplemented.

 

4.4 Assignability.
This  Note 
shall  be 
binding  upon 
the  Borrower
 and 
its successors
and assigns,
and shall
inure to be the benefit
of the Holder and
its successors
and assigns.
 Each
transferee
of this Note must
be an
“accredited
investor” (as
defined
in Rule 501(a)
of the 1933
Act).
 Notwithstanding
anything
in this Note
to the
contrary,
this Note may be pledged
as collateral
in connection with a bona fide
margin
account
or other lending arrangement.

    	18

    	 

    

4.5 Cost
of Collection.If
 default is made
in the  payment
of this Note, 
the

Borrower
shall pay
the Holder
hereof
costs of collection,
including reasonable
attorneys’
fees.

 

4.6 Governing
Law. 
This Note shall
be governed
by and
construed
in accordance
with the laws
of the State
of New
York
without regard
to principles
of conflicts
of laws. 
Any action
brought
by either
party
against
the other concerning
the transactions
contemplated
by this Note shall
be brought
only in
the state courts
of New York
or in the federal
courts
located
in the state and
county of
Nassau.
The parties to
this Note 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 Borrower
and Holder
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 Note 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
 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.

 

4.7 Certain
Amounts.  Whenever
pursuant
to this Note
the Borrower
is required
to pay an
amount in
excess
of the outstanding
principal
amount (or
the portion
thereof required
to be paid
at that
time)
plus accrued
and unpaid
interest plus
Default Interest
on such interest,
the Borrower
and the Holder
agree that
the actual
damages
to the Holder
from the receipt
of cash payment
on this Note
may be difficult
to determine
and the amount
to be so paid
by the Borrower
represents
stipulated damages
and not a penalty
and is intended
to compensate
the Holder in part
for loss of the opportunity
to convert
this Note and
to earn
a return
from
the sale of shares
of Common Stock
acquired
upon conversion
of this Note at a price
in excess
of the price paid
for such
shares
pursuant to
this Note. The Borrower
and the Holder
hereby agree
that such amount
of stipulated
damages
is not plainly disproportionate
to the possible loss to the Holder from
the receipt
of a cash payment
without the opportunity to convert
this Note into shares of Common
Stock.

 

4.8 Purchase
Agreement.
 By
its acceptance
of this Note,
each
party
agrees
to be bound by
the applicable
terms of
the Purchase
Agreement.

 

4.9 Notice
of Corporate
Events.  Except
as otherwise
provided
below, the
Holder of
this Note shall
have
no rights
as a
Holder of
Common Stock
unless and
only to the
extent
that it converts
this Note into
Common Stock.
The Borrower
shall provide
the Holder
with prior notification
of any
meeting
of the Borrower’s
shareholders
(and copies
of proxy
materials
and other
information
sent
to shareholders).
In the event
of any
taking
by the Borrower
of a record
of its shareholders
for the
purpose of
determining
shareholders
who are
entitled
to receive
payment
of any
dividend or
other distribution,
any right
to subscribe
for,
purchase
or otherwise
acquire
(including
by way
of merger,
consolidation,
reclassification
or recapitalization)
any share

of
any
class
or any
other
securities
or property,
or to receive
any
other
right,
or for
the purpose
of determining
shareholders
who are
entitled
to vote
in connection
with any
proposed
sale,
lease
or conveyance
of all or
substantially
all of
the assets
of the Borrower
or any
proposed
liquidation, dissolution or
winding up of
the Borrower,
the Borrower
shall mail
a notice
to the Holder,
at least
twenty (20)
days
prior to
the record
date specified
therein
(or thirty
(30) days
prior to the consummation
of the transaction
or event,
whichever
is earlier),
of the
date on
which any
such record is to be taken
for the purpose of
such dividend,
distribution, right
or other event,
and a brief
statement
regarding
the amount and
character
of such
dividend, distribution,
right
or other
event
to the extent
known at
such time.
 The Borrower
shall make
a public announcement
of any
event
requiring
notification
to the Holder
hereunder
substantially
simultaneously
with the notification
to the Holder
in accordance
with the terms of
this Section 4.9.

 

4.10 Remedies.
 The  Borrower
 acknowledges
 that 
a  breach
 by 
it  of  its obligations
hereunder
will cause
irreparable
harm
to the Holder,
by vitiating
the intent
and purpose
of the transaction
contemplated
hereby.
Accordingly,
the Borrower
acknowledges
that the remedy
at law
for a
breach of
its obligations
under this
Note will be inadequate
and agrees,
in the event of
a breach
or threatened
breach
by the Borrower
of the
provisions of
this Note, that the
Holder shall
be entitled,
in addition
to all
other available
remedies
at law
or in equity,
and in addition
to the penalties
assessable
herein,
to an
injunction or
injunctions restraining,
preventing
or curing
any breach
of this Note
and to
enforce
specifically
the terms
and provisions
thereof,
without the necessity
of showing economic
loss and
without any
bond or other
security
being required.

 

 

IN
WITNESS
WHEREOF,
Borrower
has
caused
this Note
to be signed
in its
name by
its duly authorized
officer
this April 11, 2013.

 

NYXIO TECHNOLOGIES
CORPORATION

 

/s/ Giorgio
Johnson

By:
GIORGIO
JOHNSON

President/Chief
Executive
Officer

    	19

    	 

    

 

EXHIBIT
A

 

NOTICE
OF CONVERSION

 

The
undersigned
hereby
elects
to convert
$____ principal
amount of the
Note (defined
below)
into that
number of
shares of
Common Stock
to be issued
pursuant to
the conversion
of the Note (“Common
Stock”) as
set
forth
below, of NYXIO
TECHNOLOGIES
CORPORATION,
a Nevada
corporation
(the “Borrower”)
according
to the conditions of
the convertible
note of the
Borrower
dated
as of April
11, 2013 (the
“Note”),
as of the
date written
below. No fee
will be charged
to the Holder
for any
conversion,
except
for transfer
taxes,
if any.

 

Box
Checked
as to applicable
instructions:

 

[
]  The Borrower
shall electronically
transmit
the Common
Stock
issuable pursuant
to this Notice
of Conversion
to the account
of the undersigned
or its nominee
with DTC through
its Deposit Withdrawal
Agent
Commission system
(“DWAC
Transfer”).

 

Name
of DTC Prime
Broker:
Account Number:

 

[ 
]  The  undersigned
 hereby
 requests
 that
 the  Borrower
 issue  a 
certificate
 or certificates
for the
number of shares
of Common
Stock set
forth
below (which
numbers are
based
on the Holder’s
calculation
attached
hereto)
in the name(s)
specified
immediately
below or,
if additional
space is
necessary,
on an
attachment
hereto:

 

ASHER
ENTERPRISES,
INC.

1 Linden
Pl., Suite
207

Great Neck,
NY. 11021

Attention:
Certificate
Delivery

(516)
498-9890

 

Date
of Conversion:

Applicable
Conversion Price:$
Number of
Shares
of Common
Stock to be
Issued

Pursuant
to Conversion of
the Notes: Amount of
Principal
Balance
Due remaining

Under
the Note
after this conversion:

 

ASHER
ENTERPRISES,
INC.

 

By:

Name:
Curt Kramer
Title:  President
Date:

1 Linden
Pl., Suite
207

Great Neck,
NY. 11021

    	20

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