Document:

Exhibit 4.2

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREUNDER IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

THIS SECURITY AND THE COMMON STOCK ISSUABLE UPON CONVERSION OF THIS SECURITY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN, THE ACQUIRER:

 

(1) REPRESENTS THAT IT AND ANY ACCOUNT FOR WHICH IT IS ACTING IS A “QUALIFIED INSTITUTIONAL BUYER” (WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT) AND THAT IT EXERCISES SOLE INVESTMENT DISCRETION WITH RESPECT TO EACH SUCH ACCOUNT, AND

 

(2) AGREES FOR THE BENEFIT OF SYNERGY PHARMACEUTICALS INC. (THE “COMPANY”) THAT IT WILL NOT OFFER, SELL, PLEDGE OR OTHERWISE TRANSFER THIS SECURITY OR ANY BENEFICIAL INTEREST HEREIN PRIOR TO THE DATE THAT IS THE LATER OF (X) ONE YEAR AFTER THE LAST ORIGINAL ISSUE DATE HEREOF OR SUCH SHORTER PERIOD OF TIME AS PERMITTED BY RULE 144 UNDER THE SECURITIES ACT OR ANY SUCCESSOR PROVISION THERETO AND (Y) SUCH LATER DATE, IF ANY, AS MAY BE REQUIRED BY APPLICABLE LAW, EXCEPT:

 

(A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF, OR

 

(B) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BECOME EFFECTIVE UNDER THE SECURITIES ACT, OR

 

(C) TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT, OR

 

(D) PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT OR ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

 

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PRIOR TO THE REGISTRATION OF ANY TRANSFER IN ACCORDANCE WITH CLAUSE (2)(D) ABOVE, THE COMPANY AND THE TRUSTEE RESERVE THE RIGHT TO REQUIRE THE DELIVERY OF SUCH LEGAL OPINIONS, CERTIFICATIONS OR OTHER EVIDENCE AS MAY REASONABLY BE REQUIRED IN ORDER TO DETERMINE THAT THE PROPOSED TRANSFER IS BEING MADE IN COMPLIANCE WITH THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. NO REPRESENTATION IS MADE AS TO THE AVAILABILITY OF ANY EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

 

2

 

Synergy Pharmaceuticals Inc.

 

7.50% Convertible Senior Note due 2019

 

	
No. 1
    	
 
    	
Initially   $200,000,000
    

 

CUSIP No. 871639AA8

 

Synergy Pharmaceuticals Inc., a corporation duly organized and validly existing under the laws of the State of Delaware (the “Company,” which term includes any successor corporation or other entity under the Indenture referred to on the reverse hereof), for value received hereby promises to pay to CEDE & CO., or registered assigns, the principal sum as set forth in the “Schedule of Exchanges of Notes” attached hereto, which amount, taken together with the principal amounts of all other outstanding Notes, shall not, unless permitted by the Indenture, exceed $200,000,000 in aggregate at any time, in accordance with the rules and procedures of the Depositary, on November 1, 2019, and interest thereon as set forth below.

 

This Note shall bear interest at the rate of 7.50% per year from November 3, 2014, or from the most recent date to which interest had been paid or provided for to, but excluding, the next scheduled Interest Payment Date until November 1, 2019.  Interest is payable semi-annually in arrears on each May 1 and November 1, commencing on May 1, 2015, to Holders of record at the close of business on the preceding April 15 and October 15 (whether or not such day is a Business Day), respectively.  Additional Interest will be payable as set forth in Section 4.06(d), Section 4.06(e) and Section 6.03 of the within-mentioned Indenture, and any reference to interest on, or in respect of, any Note therein shall be deemed to include Additional Interest if, in such context, Additional Interest is, was or would be payable pursuant to any of such Section 4.06(d), Section 4.06(e) or Section 6.03, and any express mention of the payment of Additional Interest in any provision therein shall not be construed as excluding Additional Interest in those provisions thereof where such express mention is not made.

 

Any Defaulted Amounts shall accrue interest per annum at the rate borne by the Notes plus one percent, subject to the enforceability thereof under applicable law, from, and including, the relevant payment date to, but excluding, the date on which such Defaulted Amounts shall have been paid by the Company, at its election, in accordance with Section 2.03(c) of the Indenture.

 

The Company shall pay the principal of and interest on this Note, if and so long as such Note is a Global Note, in immediately available funds to the Depositary or its nominee, as the case may be, as the registered Holder of such Note.  As provided in and subject to the provisions of the Indenture, the Company shall pay the principal of any Notes (other than Notes that are Global Notes) at the office or agency designated by the Company for that purpose.  The Company has initially designated the Trustee as its Paying Agent and Note Registrar in respect of the Notes and its agency in the Borough of Manhattan, The City of New York, as a place where Notes may be presented for payment or for registration of transfer and exchange.

 

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Reference is made to the further provisions of this Note set forth on the reverse hereof, including, without limitation, provisions giving the Holder of this Note the right to convert this Note into shares of Common Stock on the terms and subject to the limitations set forth in the Indenture.  Such further provisions shall for all purposes have the same effect as though fully set forth at this place.

 

This Note, and any claim, controversy or dispute arising under or related to this Note, shall be construed in accordance with and governed by the laws of the State of New York (without regard to the conflicts of laws provisions thereof other than Section 5-1401 of the General Obligations Law or any successor thereto).

 

In the case of any conflict between this Note and the Indenture, the provisions of the Indenture shall control and govern.

 

This Note shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been signed manually by the Trustee or a duly authorized authenticating agent under the Indenture.

 

[Remainder of page intentionally left blank]

 

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IN WITNESS WHEREOF, the Company has caused this Note to be duly executed.

 

	
 
    	
 
    	
SYNERGY PHARMACEUTICALS   INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Dated:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
TRUSTEE’S   CERTIFICATE OF AUTHENTICATION
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
WELLS FARGO BANK,   NATIONAL ASSOCIATION as Trustee, certifies that this is one of the Notes   described in the within-named Indenture.
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Authorized   Signatory
    	
 
    	
 
    	
 
    

 

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REVERSE OF NOTE

 

Synergy Pharmaceuticals Inc.
 7.50% Convertible Senior Note due 2019

 

This Note is one of a duly authorized issue of Notes of the Company, designated as its 7.50% Convertible Senior Notes due 2019 (the “Notes”), limited to the aggregate principal amount of $200,000,000 all issued or to be issued under and pursuant to an Indenture dated as of November 3, 2014 (the “Indenture”), between the Company and Wells Fargo Bank, National Association (the “Trustee”), to which Indenture and all indentures supplemental thereto reference is hereby made for a description of the rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, the Company and the Holders of the Notes.  Additional Notes may be issued in an unlimited aggregate principal amount, subject to certain conditions specified in the Indenture.  Capitalized terms used in this Note and not defined in this Note shall have the respective meanings set forth in the Indenture.

 

In case certain Events of Default shall have occurred and be continuing, the principal of, and interest on, all Notes may be declared, by either the Trustee or Holders of at least 25% in aggregate principal amount of Notes then outstanding, and upon said declaration shall become, due and payable, in the manner, with the effect and subject to the conditions and certain exceptions set forth in the Indenture.

 

Subject to the terms and conditions of the Indenture, the Company will make all payments and deliveries in respect of the Fundamental Change Purchase Price on the Fundamental Change Purchase Date and the principal amount on the Maturity Date, as the case may be, to the Holder who surrenders a Note to a Paying Agent to collect such payments in respect of the Note.  The Company will pay cash amounts in money of the United States that at the time of payment is legal tender for payment of public and private debts.

 

The Indenture contains provisions permitting the Company and the Trustee in certain circumstances, without the consent of the Holders of the Notes, and in certain other circumstances, with the consent of the Holders of not less than a majority in aggregate principal amount of the Notes at the time outstanding, evidenced as in the Indenture provided, to execute supplemental indentures modifying the terms of the Indenture and the Notes as described therein.  It is also provided in the Indenture that, subject to certain exceptions, the Holders of a majority in aggregate principal amount of the Notes at the time outstanding may on behalf of the Holders of all of the Notes waive any past Default or Event of Default under the Indenture and its consequences.

 

No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay or deliver, as the case may be, the principal (including the Fundamental Change Purchase Price, if applicable) of, accrued and unpaid interest on, and the consideration due upon conversion of, this Note at the place, at the respective times, at the rate and in the lawful money herein prescribed.

 

1

 

The Notes are issuable in registered form without coupons in denominations of $1,000 principal amount and integral multiples thereof.  At the office or agency of the Company referred to on the face hereof, and in the manner and subject to the limitations provided in the Indenture, Notes may be exchanged for a like aggregate principal amount of Notes of other authorized denominations, without payment of any service charge but, if required by the Company or Trustee, with payment of a sum sufficient to cover any transfer or similar tax that may be imposed in connection therewith as a result of the name of the Holder of the new Notes issued upon such exchange of Notes being different from the name of the Holder of the old Notes surrendered for such exchange.

 

The Notes are not subject to redemption at the option of the Company through the operation of any sinking fund or otherwise.

 

Upon the occurrence of a Fundamental Change, the Holder has the right, at such Holder’s option, to require the Company to purchase for cash all of such Holder’s Notes or any portion thereof (in principal amounts of $1,000 or integral multiples thereof) on the Fundamental Change Purchase Date at a price equal to the Fundamental Change Purchase Price.

 

Subject to the provisions of the Indenture, the Holder hereof has the right, at its option, at any time prior to the close of business on the Business Day immediately preceding the Maturity Date, to convert any Notes or portion thereof that is $1,000 or an integral multiple thereof, into shares of Common Stock at the Conversion Rate specified in the Indenture, as adjusted from time to time as provided in the Indenture.

 

2

 

ABBREVIATIONS

 

The following abbreviations, when used in the inscription of the face of this Note, shall be construed as though they were written out in full according to applicable laws or regulations:

 

TEN COM = as tenants in common

 

UNIF GIFT MIN ACT = Uniform Gifts to Minors Act

 

CUST = Custodian

 

TEN ENT = as tenants by the entireties

 

JT TEN  = joint tenants with right of survivorship and not as tenants in common

 

Additional abbreviations may also be used though not in the above list.

 

3

 

SCHEDULE A

 

SCHEDULE OF EXCHANGES OF NOTES

 

Synergy Pharmaceuticals Inc.
 7.50% Convertible Senior Notes due 2019

 

The initial principal amount of this Global Note is TWO HUNDRED MILLION DOLLARS ($200,000,000).  The following increases or decreases in this Global Note have been made:

 

	
Date of exchange
    	
 
    	
Amount of
   decrease in
   principal amount
   of this Global Note
    	
 
    	
Amount of
   increase in
   principal amount
   of this Global Note
    	
 
    	
Principal amount
   of this Global Note
   following such
   decrease or
   increase
    	
 
    	
Signature of
   authorized
   signatory of
   Trustee or
   Custodian
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

4

 

ATTACHMENT 1

 

[FORM OF NOTICE OF CONVERSION]

 

To:  Synergy Pharmaceuticals Inc.

 

Wells Fargo Bank, National Association

Corporate Trust-DAPS Reorg

6th and Marquette Ave 12th Floor

MAC N9303-121

Minneapolis, MN 55479

Phone: 1-800-344-5128

Fax: 1-866-969-1290

Email: dapsreorg@wellsfargo.com

 

The undersigned registered owner of this Note hereby exercises the option to convert this Note, or the portion hereof (that is $1,000 principal amount or an integral multiple thereof) below designated, into shares of Common Stock in accordance with the terms of the Indenture referred to in this Note, and directs that the shares of Common Stock issuable and deliverable upon such conversion, together with any cash for any fractional share, and any Notes representing any unconverted principal amount hereof, be issued and delivered to the registered Holder hereof unless a different name has been indicated below.  If any shares of Common Stock or any portion of this Note not converted are to be issued in the name of a Person other than the undersigned, the undersigned will pay all documentary, stamp or similar issue or transfer taxes, if any in accordance with Section 14.02(d) and Section 14.02(e) of the Indenture.  Any amount required to be paid to the undersigned on account of interest accompanies this Note.  Capitalized terms used herein but not defined shall have the meanings ascribed to such terms in the Indenture.

 

	
Dated:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Signature(s)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature   Guarantee
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature(s) must   be guaranteed by an eligible Guarantor Institution (banks, stock brokers,   savings and loan associations and credit unions) with membership in an approved
    	
 
    	
 
    

 

1

 

	
signature   guarantee medallion program pursuant to Securities and Exchange Commission   Rule 17Ad-15 if shares of Common Stock are to be issued, or Notes are to   be delivered, other than to and in the name of the registered holder.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Fill in for   registration of shares if to be issued, and Notes if to be delivered, other   than to and in the name of the registered holder:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
(Name)
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
(Street Address)
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
(City, State and   Zip Code)
    	
 
    	
 
    
	
Please print name   and address
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Principal amount   to be converted (if less than all): $            ,000
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
NOTICE:  The above signature(s) of the   Holder(s) hereof must correspond with the name as written upon the face   of the Note in every particular without alteration or enlargement or any   change whatever.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Social Security or   Other Taxpayer Identification Number
    

 

2

 

ATTACHMENT 2

 

[FORM OF FUNDAMENTAL CHANGE PURCHASE NOTICE]

 

To: Synergy Pharmaceuticals Inc.

 

Wells Fargo Bank, National Association

Corporate Trust-DAPS Reorg

6th and Marquette Ave 12th Floor

MAC N9303-121

Minneapolis, MN 55479

Phone: 1-800-344-5128

Fax: 1-866-969-1290

Email: dapsreorg@wellsfargo.com

 

The undersigned registered owner of this Note hereby acknowledges receipt of a notice from Synergy Pharmaceuticals Inc. (the “Company”) as to the occurrence of a Fundamental Change with respect to the Company and specifying the Fundamental Change Purchase Date and requests and instructs the Company to pay to the registered holder hereof in accordance with Section 15.02 of the Indenture referred to in this Note (1) the entire principal amount of this Note, or the portion thereof (that is $1,000 principal amount or an integral multiple thereof) below designated, and (2) if such Fundamental Change Purchase Date does not fall during the period after a Regular Record Date and on or prior to the corresponding Interest Payment Date, accrued and unpaid interest, if any, thereon to, but excluding, such Fundamental Change Purchase Date.  Capitalized terms used herein but not defined shall have the meanings ascribed to such terms in the Indenture.

 

In the case of Physical Notes, the certificate numbers of the Notes to be purchased are as set forth below:

 

	
Dated:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Signature(s)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Social Security or   Other Taxpayer Identification Number
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Principal amount   to be repaid (if less than all):   $            ,000
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
NOTICE: The above   signature(s) of the Holder(s) hereof must correspond with the name   as written upon the face of 
    

 

1

 

	
 
    	
 
    	
the Note in every   particular without alteration or enlargement or any change whatever.
    

 

2

 

ATTACHMENT 3

 

[FORM OF ASSIGNMENT AND TRANSFER]

 

For value received                                                          hereby sell(s), assign(s) and transfer(s) unto                                    (Please insert social security or Taxpayer Identification Number of assignee) the within Note, and hereby irrevocably constitutes and appoints                                            attorney to transfer the said Note on the books of the Company, with full power of substitution in the premises.

 

In connection with any transfer of the within Note occurring prior to the Resale Restriction Termination Date, as defined in the Indenture governing such Note, the undersigned confirms that such Note is being transferred:

 

o                                    To Synergy Pharmaceuticals Inc. or a subsidiary thereof; or

 

o                                    Pursuant to a registration statement that has become or been declared effective under the Securities Act of 1933, as amended; or

 

o                                    Pursuant to and in compliance with Rule 144A under the Securities Act of 1933, as amended; or

 

o                                    Pursuant to and in compliance with Rule 144 under the Securities Act of 1933, as amended, or any other available exemption from the registration requirements of the Securities Act of 1933, as amended.

 

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Dated:
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Signature(s)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Signature   Guarantee
    	
 
    
	
 
    	
 
    
	
Signature(s) must   be guaranteed by an eligible Guarantor Institution (banks, stock brokers,   savings and loan associations and credit unions) with membership in an   approved signature guarantee medallion program pursuant to Securities and   Exchange Commission Rule 17Ad-15 if Notes are to be delivered, other   than to and in the name of the registered holder.
    	
 
    

 

NOTICE:  The signature on the assignment must correspond with the name as written upon the face of the Note in every particular without alteration or enlargement or any change whatever.

 

4Exhibit 10.1

 

EXECUTION COPY

 

STOCK PURCHASE AGREEMENT

 

THIS STOCK PURCHASE
AGREEMENT (“Agreement”) is made and entered into effective as of the 10th day of October, 2014, by and between
the ROBERT A. FICOCELLI REVOCABLE TRUST (the “Trust”), ROBERT A. FICOCELLI, individually
(“Ficocelli”), and STEPHEN R. HOMER, individually (“Homer”) (the Trust, Ficocelli and Homer are
herein referred to as “Seller Parties” or each a “Seller Party”), and MAGNEGAS CORPORATION, a Delaware
corporation (“Purchaser”).

 

WITNESSETH
:

 

WHEREAS, the
Trust and Homer own, in the aggregate, all the shares of the common stock, par value $5.00 per share (the “Shares”),
of Equipment Sales and Service, Inc. a Florida corporation (the “Corporation”), which Shares constitute all of the
issued and outstanding capital stock of the Corporation;

 

WHEREAS, the
Corporation owns and operates a business of sales and distribution of gases (the “Business”) based from its headquarters
in Pinellas Park, Florida; and

 

WHEREAS, Purchaser
desires to purchase from the Trust and Homer, and the Trust and Homer desire to sell to Purchaser, the Shares, subject to and in
accordance with the terms hereof.

 

NOW, THEREFORE,
in consideration of the foregoing premises and the respective representations, warranties, covenants, agreements, and conditions
hereinafter set forth, and intending to be legally bound hereby, the parties hereto agree as follows.

 

ARTICLE 1

PURCHASE AND SALE OF STOCK

 

Section 1.1 Purchase and Sale of Stock

 

Upon the terms and
subject to the conditions hereof, at the Closing (as defined herein) the Trust and Homer will sell, convey, assign, transfer, and
deliver to Purchaser, and Purchaser will purchase, acquire, and accept, all of the Shares; and Purchaser will pay for the Shares
as hereinafter provided.

 

Section 1.2 Additional Equipment

 

The price to be paid
to the Seller Parties by Purchaser for the Shares is Three Million and no/100 Dollars (U.S. $3,000,000.00) (the “Purchase
Price”). At the Closing, Purchaser shall deliver to the Seller Parties the Purchase Price, less any amounts deposited into
escrow pursuant to Article 9 hereof, in cash or by wire transfer of immediately available funds.

 

The Parties acknowledge
that the Purchase Price to be paid by Purchaser includes the value of certain equipment listed on Schedule 1.2 which is not currently
reflected in the Corporation’s books, as it has been fully depreciated, but is owned by the Corporation free and clear of
any liens.

 

    	 

    	 

    

  

ARTICLE 2

CLOSING

 

Section 2.1  Time and Place of Closing

 

The closing of the
transactions contemplated by this Agreement (the “Closing”) shall take place at the offices of the Purchaser in Tarpon
Springs, Florida on a date to be mutually agreed on by the parties, when all Closing conditions have been met or otherwise waived
by the applicable party, upon delivery of the required deliveries pursuant to Section 2.2, but in no event later than November
14, 2014 (the “Closing Date”).

 

Section 2.2  Deliveries at the Closing

 

At the Closing:

 

		(a)	Purchaser shall deliver to the Seller Parties

 

(i)          the
Purchase Price as provided for in Section 1.2; and

 

(ii)         a Certificate
of the Secretary of Purchaser certifying as to the incumbency of the Purchaser’s officers authorized to enter into this Agreement
on behalf of Purchaser, as to the continuing effectiveness of any corporate resolutions of Purchaser authorizing Purchaser to consummate
the transactions contemplated hereby (attaching the appropriate resolutions), and as to the representations of Purchaser under
Article 5 hereof.

 

		(b)	Seller Parties shall deliver to Purchaser

 

(i)          certificates
representing the Shares with applicable stock transfer tax stamps, if any, duly endorsed or accompanied by stock powers duly executed
in blank and otherwise in form acceptable for transfer on the books of the Corporation and with any other documents that are necessary
to deliver to Purchaser good and valid title to the Shares;

 

(ii)         Certification
of Trust of Robert Ficocelli, as trustee of the Trust, regarding his status and authority as Trustee, in the form attached as Exhibit
2.2(b)(ii) hereto.

 

(iii)         the
books and records of the Corporation; 

 

(iv)        the
executed Non-Competition and Non-Solicitation Agreements, for each Seller Party, as defined in Section 3.2 hereof;

 

(v) legal opinion
of counsel to Seller Parties in the form attached as Exhibit 2.2(b)(v); and

 

(vi)        the
executed Employee Agreements.

 

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		(c)	Seller Parties and Purchaser shall deliver to one another the executed Lease Agreement (as defined
in Section 3.1 hereof), together with all keys to the premises leased thereunder.

 

		(d)	Each party hereto shall deliver to the appropriate recipient all other previously undelivered documents,
instruments, and writings required to be delivered by it or him at or prior to the Closing pursuant to this Agreement or otherwise
required in connection herewith.

 

Section 2.3 Interdependence

 

The transfer and deliveries
described in this Article 2 are mutually interdependent and regarded as occurring simultaneously as of the close of business on
the Closing Date; and, unless waived by both the transferor and transferee, no such transfer or delivery shall become effective
unless and until all other transfers and deliveries provided for in this Article 2 have also been consummated.

 

ARTICLE 3

RELATED AGREEMENTS

 

Section 3.1 Lease Agreement

 

At the Closing, Purchaser
and Trust shall enter into a lease agreement for the premises which currently serve as the Corporation’s headquarters in
Pinellas Park, in substantially the form attached hereto as Exhibit 3.1 (the “Lease Agreement”). A condition
to Purchaser’s execution of the Lease Agreement shall be Purchaser’s satisfaction with a physical inspection of the
premises conducted by a certified building inspector engaged by Purchaser at Purchaser’s sole cost, to be held a minimum
of five (5) business days prior to Closing,

 

Section 3.2 Restrictive Covenant

 

As additional incentive
for Purchaser to purchase the Shares, at the Closing, each of Ficocelli and Homer shall execute a non-competition and non-solicitation
agreement in favor of Purchaser in the form of Exhibit 3.2 (the “Non-Competition and Non-Solicitation Agreement”).
The parties agree that adequate consideration for the Non-Competition and Non-Solicitation Agreement is included in the Purchase
Price and that such an agreement is an integral part of this Stock Purchase Agreement and is incorporated by reference herein.
The agreement of Ficocelli and Homer to abide by the provisions of his respective Non-Competition and Non-Solicitation Agreement
form an integral part of the good will of the Corporation’s business being purchased. Each Seller Party further acknowledges
that his or its sale of the Shares of the Corporation includes inherently a transfer of all of the Corporation’s assets,
including the Corporation’s trade secrets and other intellectual property as described in Section 4.15 of this Agreement.

 

Section 3.3 IRS Allocation of Purchase
Price

 

Each Seller Party and
Purchaser agrees to file IRS Form 8594 and all federal, state, local and foreign Tax returns in accordance with allocation of the
Purchase Price between the Shares and the Non-Competition and Non-Solicitation Agreement, to be agreed upon by the parties prior
to closing.

 

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Section 3.4 Further Assurances

 

The parties hereto
agree that each will execute and deliver to the others any and all documents in addition to those expressly provided for in this
Agreement that may be reasonably necessary or appropriate to carry out the intent of this Agreement and the transactions contemplated
hereby, whether at or after the Closing. Each Seller Party further agrees that at any time and from time to time after the Closing
the Seller Parties will execute and deliver to Purchaser such further conveyances, assignments, or other written assurances, and
take such further actions, as Purchaser may reasonably request to perfect and protect Purchaser’s title to the Shares.

 

Section 3.5 Employment Agreements

 

The Seller Parties
shall solicit the employees listed on Schedule 3.5 to enter into an employment agreement with the Corporation, on
terms satisfactory to Purchaser (the “Employment Agreements.

 

ARTICLE 4

REPRESENTATIONS AND WARRANTIES OF SELLER PARTIES

 

The Seller Parties
hereby represent and warrant, jointly and severally, to Purchaser as follows:

 

Section 4.1 Ownership of Shares and Capacity to Sell

 

The Trust owns beneficially
and of record seventy-five (75) Shares. Homer owns beneficially and of record twenty-five (25) Shares. Each of Ficocelli, as trustee
of the Trust, and Homer has the full legal right, power, and authority to sell, convey, assign, and transfer the Shares to Purchaser
pursuant to this Agreement free and clear of any lien, claim, charge, encumbrance, or restriction whatsoever, so that upon delivery
of such Shares to Purchaser, good, and valid title to such Shares will vest in Purchaser free and clear of any lien, claim, charge,
encumbrance, or restriction whatsoever.

 

Section 4.2 Corporate Organization

 

The Corporation is
a corporation duly organized, validly existing, and in good standing under the laws of the State of Florida. The Corporation has
all requisite corporate power and authority to own, operate, and lease its properties and to carry on the Business as now being
conducted.

 

Section 4.3 Capitalization

 

The authorized capital
stock of the Corporation consists of one hundred (100) shares of common stock, par value $5.00 per share. The Shares are all of
the issued and outstanding shares of capital stock of the Corporation. All of the Shares are duly authorized and issued, fully
paid, and non-assessable. There are no outstanding options or warrants for any stock of the Corporation.

 

    	4

    	 

    

 

Section 4.4 Authorization

 

Homer is a natural
person and has full right, capacity and authority to enter into this Agreement and any other documents contemplated hereunder (the
“Transaction Documents”) and to sell, assign, transfer and deliver the Shares to be sold by him hereunder and to perform
his other obligations under each Transaction Document to which he is a party. Each of the Trust, upon execution of this Agreement
by Ficocelli as its trustee, and Ficocelli has full right, capacity and authority to enter into this Agreement and the Transaction
Documents and to sell, assign, transfer and deliver the Shares to be sold by the Trust hereunder and to perform their respective
other obligations under each Transaction Document to which either the Trust or Ficocelli is a party. Assuming that this Agreement
constitutes the valid and binding obligation of Purchaser, this Agreement constitutes the valid and binding obligations of the
Seller Parties, enforceable in accordance with its terms, except as the enforceability hereof may be subject to or limited by applicable
bankruptcy, insolvency, reorganization, or other similar laws affecting creditors’ rights generally and to general principles
of equity being applied at the discretion of the courts.

 

Section 4.5 Consents and Approvals

 

Neither the execution
and delivery by Seller Parties of this Agreement, nor the consummation by Seller Parties of the transactions contemplated hereby,
nor compliance by Seller Parties with any of the provisions hereof will (i) conflict with or result in a breach of any provision
of the Articles of Incorporation or Bylaws of the Corporation of any instrument creating or governing the Trust; (ii) violate any
order, writ, injunction, decree, judgment, ruling, law, rule or regulation of any court or governmental authority, applicable to
the Corporation or Seller Parties, or any of their respective properties; (iii) require any consent, approval, or authorization
of, or notice to, or declaration, filing, or registration with, any governmental or regulatory authority; or (iv) violate or conflict
with, or result in a breach of, or constitute a default under, or require consents from any other party to, or result in a right
of termination or cancellation of, or result in acceleration of any right or creation of any lien under, any note, bond, mortgage,
indenture, deed of trust, license, franchise, permit, lease, contract, agreement, or other instrument or commitment or obligation
relating to the Business of the Corporation or to which any of the Seller Parties or the Corporation is or was a party or by which
any of them or any of their respective properties may be or was bound or affected.

 

Section 4.6 Financial Statements

 

The Corporation’s
fiscal year ends December 31. The Seller Parties have previously delivered to Purchaser the (a) audited balance sheet and statements
of income, and cash flow of the Corporation as of and for the fiscal years ended December 31, 2013 and 2012 (the “Audited
Financial Statements”); and (b) unaudited balance sheets and statements of income, and cash flow for the six months ended
June 30, 2014 (the “Balance Sheet Date”) of the Corporation (the “Unaudited Statements”). The Audited Financial
Statements and the Unaudited Statements are hereinafter jointly referred to as the “Financial Statements.” The Financial
Statements were prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) applied
on a consistent basis throughout the periods covered thereby, present fairly and accurately the financial condition of the Corporation
as of such dates and the results of operations for such periods and are correct and complete, and are consistent with the books
and records of the Corporation.

 

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Section 4.7 Absence of Undisclosed Liabilities/Subsequent
Events

 

Except as disclosed
on Schedule 4.7, the Corporation did not have as of the Balance Sheet Date any material liabilities or obligations
except for liabilities reflected on the Financial Statements. Since the Balance Sheet Date the Corporation has operated the Business
in the ordinary course of business consistent with past custom and practice.

 

Section 4.8 Legal Proceedings

 

As of the date of this
Agreement, there are no claims, actions, suits, inquiries, investigations, or other proceedings pending or, to the best knowledge
of each Seller Party, threatened or imminent, relating to Seller Parties or the Corporation before any court or governmental body.
None of the Seller Parties or the Corporation is subject to any judgment, order, decree, or any governmental restriction which
is likely to result in any change in or effect on the Corporation that is materially adverse to the business, properties, earnings,
prospects, or condition (financial or otherwise) of the Corporation.

 

Section 4.9 Title to Properties and Related Matters

 

Schedule 4.9
attached hereto sets forth, as of the date of this Agreement an accurate and reasonably detailed listing of the machinery, equipment,
vehicles, and other items of tangible personal property owned or leased by the Corporation, having in the case of each item a value
in excess of Five Thousand Dollars (U.S. $5,000.00), indicating in each case whether owned or leased. The Corporation has good,
valid, and marketable title to all of its assets and any other property which the Corporation purports to own; such assets and
properties and title thereto are free and clear of all liens, mortgages, pledges, claims, charges, security interests, and other
encumbrances (all of the foregoing encumbrances being referred to herein as a “Lien” or “Liens”), except,
with respect to each such property, Liens which relate to current Taxes not yet due, and which, in any event, do not materially
detract from or impair the marketability, value, or present use of such property (the foregoing exceptions being referred to herein
as the “Permissible Exceptions”). Schedule 4.9 sets forth all the assets used by the Corporation in the
Business and all assets required for the Business as conducted to date by the Corporation.

 

Section 4.10 Taxes and Tax Returns

 

There are no Liens
with respect to Taxes (except for Permissible Exceptions). For purposes of this Agreement, (i) the term “Taxes” shall
mean all taxes, charges, fees, levies, or other assessments, including, without limitation, income, gross receipt, excise, property,
sales, use, license, payroll, and franchise taxes, imposed by the United States, or any state, local, or foreign government or
subdivision or agency thereof, whether computed on a unitary, combined, or any other basis; and such term shall include any interest
and penalties or additions to tax; and (ii) the term “Tax Return” shall mean any report, return, or other document
or information required to be supplied to a taxing authority in connection with Taxes.

 

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All Tax Returns required
to be filed by or on behalf of the Corporation with respect to all periods ended prior to the date of this Agreement have been
duly filed with the appropriate authorities and such Tax Returns are accurate in all material respects. All Taxes (including estimated
tax payments) required to be shown on such Tax Returns or claimed to be due from the Corporation or with respect to its business
have been paid or reflected as a liability on the books and records of the Corporation. All deficiencies asserted as a result of
any federal, state, or local tax audits have been paid or finally settled and no issue has been raised in any such audit which,
by application of the same or similar Principles, reasonably could be expected to result in a proposed deficiency for any other
period not so audited. No state of facts exists or has existed which would constitute grounds for the assessment of any tax liability
with respect to the periods which have not been audited by the Internal Revenue Service or by other appropriate federal or state
authorities. There are no outstanding agreements or waivers extending the statutory period of limitation applicable to any Tax
Return for any period. Seller Parties shall be responsible for the filing of all Tax Returns for the Company for all periods ending
on or before the Closing Date. Purchaser agrees to cooperate fully with Seller Parties in the filing of such Tax Returns.

 

Section 4.11 Material Contracts

 

Schedule 4.11
attached hereto lists and briefly describes all Material Contracts as of the Closing Date. As used herein the term “Material
Contract” shall mean a contract, agreement, instrument, arrangement, understanding, lease, or rental agreement, whether written
or verbal, to which the Corporation is a party, which (i) provides for aggregate payments by the Corporation of Five Thousand Dollars
(U.S. $5,000.00) or more, or (ii) by its terms extends for a period ending (or is not otherwise terminable for a period of) more
than one year after the Closing Date. Each such contract is enforceable and will continue to be enforceable on identical terms
following the Closing. Neither the Corporation nor any of the counter-parties to any such contract is or has been in breach or
violation of, or default under, any of such contract’s provisions.

 

Section 4.12 Litigation. 

 

Schedule 4.12
sets forth each instance in which any of the Seller Parties or the Corporation (a) is subject to any pending or outstanding order,
ruling, decision, award, judgment, consent, decree, writ, injunction, or other similar determination or finding by, before or under
any governmental body or arbitrator (an “Order”); or (b) is a party, the subject of or, to the Seller Parties’
knowledge, is threatened to be made a party to or the subject of any action, lawsuit, arbitration, mediation, investigation or
similar proceeding by or before any arbitrator or governmental body (an “Action”). No Order or Action required questions
the enforceability of a Transaction Document or any of the transactions contemplated thereunder (the “Transactions”),
or could result in any material adverse effect on the Business or the Corporation, and the Seller Parties have no basis to believe
that any such Action may be brought or threatened against the Seller Parties, the Corporation or Purchaser.

 

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Section 4.13 Environmental, Health and Safety
Matters. 

 

Except as set forth
in Schedule 4.13, (a) the Seller Parties and the Corporation are in compliance with all Environmental Laws (as defined
below) and other federal, state and local health and safety requirements (jointly with the Environmental Laws, the “Environmental,
Health and Safety Requirements”) in connection with owning, using, maintaining and operating the Business; (b) the premises
leased under the Lease Agreement are and have been in compliance with all Environmental, Health and Safety Requirements; (c) Seller
Parties and the Corporation have not used, stored, treated, transported, shipped off-site, manufactured, generated, refined, handled,
produced, disposed, or released any hazardous materials on, under, at, to, from or in any way affecting any real property owned,
operated or used at any time by the Business in any manner that (i) constituted or constitutes a violation of any Environmental,
Health and Safety Requirements, or (ii) required or requires remediation or abatement under any Environmental, Health and Safety
Requirements; (d) none of the Seller Parties or the Corporation or the Business has agreed to indemnify or hold harmless any other
person for any violation of Environmental, Health and Safety Requirements or any remediation required thereunder and, to the extent
that either is subject to such an agreement, none of the Seller Parties or the Corporation or the Business have been subject to
a claim to so indemnify or hold harmless any such other person and, to Seller Parties’ knowledge, there are no circumstances
that could reasonably be expected to result in such a claim; (g) none of the Seller Parties or the Corporation or the Business
have given any release or waiver of liability related to the presence of any Hazardous Materials; and (h) Seller Parties and the
Corporation have delivered to Purchaser true and complete copies and results of all permits, environmental reports, investigations,
disclosures, studies, sampling results, analyses, assessments, tests, plans, and audits that are in the possession or control of
Seller Parties and the Corporation related to the Business, and any real property operated or used at any time by the Business.
All Permits required to be held by Seller Parties and the Corporation or the Business pursuant to Environmental, Health and Safety
Requirements are set forth on Schedule 4.11.

 

“Environmental
Law(s)” means any foreign, federal, state or local statute, regulation, ordinance, or rule of common law as now or hereafter
in effect in any way or any other legally binding requirement relating to the environment, natural resources, spills or pollution,
or protection of human health and safety including all those relating to the presence, use, production, generation, handling, transportation,
treatment, storage, disposal, distribution, labeling, testing, processing, discharge, release, threatened release, control, exposure
to, or cleanup of any substance, material or waste which is regulated by the United States, or any state or local governmental
body, including petroleum and its by-products, asbestos or asbestos-containing material, polychlorinated biphenyls, lead-based
paint, and any material or substance which is defined as a “hazardous waste” or similar label, including any substance
the presence, use, handling, storage or disposal of which is prohibited under any provisions of U.S. or state law. For the avoidance
of doubt, Environmental Laws shall include but is not limited to the Comprehensive Environmental Response, Compensation and Liability
Act (42 U.S.C. § 9601 et seq.), the Emergency Planning and Right-To-Know Act (42 U.S.C. § 11101 et seq.), the Hazardous
Materials Transportation Act (49 U.S.C. App. § 1801 et seq.), the Solid Waste Disposal Act (42 U.S.C. § 6901 et seq.)
(including the Resource Conservation and Recovery Act), the Clean Water Act (33 U.S.C. § 1251 et seq.), the Clean Air Act
(42 U.S.C. § 7401 et seq.), the Toxic Substances Control Act (15 U.S.C. § 2601 et seq.), the Safe Drinking Water Act
(42 U.S.C. § 300(f) et seq.), the Lead-Based Paint Exposure Reduction Act (42 U.S.C. § 2681 et seq.), the National Environmental
Policy Act (42 U.S.C. § 4321 et seq.), and the Occupational Safety and Health Act (29 U.S.C. § 651 et seq.), and all
Laws of a similar nature, and the rules and regulations promulgated pursuant thereto, each as amended.

 

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Section 4.14 Employee Benefits.

 

Schedule 4.14
lists each non-qualified deferred compensation plan, qualified defined contribution retirement plan, qualified defined benefit
retirement plan or other material fringe benefit plan or program that the Corporation maintains or to which the Corporation contributes
with regard to any individual employed in the Business (“Employee Benefit Plans”). With respect to any Employee Benefit
Plan, within the meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974 (“ERISA”), which is
subject to ERISA and which is sponsored, maintained or contributed to, or has been sponsored, maintained or contributed to, within
six years prior to the Closing Date, by Seller Parties and the Corporation or any person deemed to be affiliated or aggregated
with Seller Parties and the Corporation under Sections 414(b), (c), (m) or (o) of the Internal Revenue Code of 1986 (the “Code”)
or Section 4001(a)(14) of ERISA, (a) no unsatisfied withdrawal liability or obligation, within the meaning of Section 4201 of ERISA,
has been incurred, (b) no unsatisfied liability or obligation to the Pension Benefit Guaranty Corporation has been incurred by
the Corporation or any ERISA Affiliate, (c) no accumulated funding deficiency, whether or not waived, within the meaning of Section
302 of ERISA or Section 412 of the Code has been incurred and (d) all contributions (including installments) to such plan required
by Section 302 of ERISA and Section 412 of the Code have been timely made. With respect to any kind of Employee Benefit Plan, such
plan has been funded and maintained in compliance with all Laws applicable thereto and the requirements of such plan’s governing
documents.

 

Section 4.15 Intellectual Property. 

 

Schedule 4.15
sets forth a true and complete list of (i) all trademarks, service marks and trade names, and all federal and state registrations
or applications for registration relating thereto, and all licenses granted to the Corporation or to Seller Parties relating thereto,
which are used or held for use in the Business and (ii) all telephone, telecopy and e-mail addresses, websites and listings used
in the Business. Except as set forth in Schedule 4.15, the Seller Parties and the Corporation own, or possess adequate
rights to use, all Intellectual Property used in the Business. No Permit is required for the assignment of all interests in the
Intellectual Property used in the Business to Purchaser as part of the Transactions. The Seller Parties and the Corporation’s
use of the Intellectual Property in the Business does not, and Purchaser’s use of such Intellectual Property after Closing
will not, infringe upon any rights any other person owns or holds. Schedule 4.15 also includes a general description
of the Corporation’s trade secrets or a description of the Corporation’s records that contain such trade secrets.

 

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Section 4.16 Inventory. 

 

The inventories of
the Business (i) are in good, merchantable and useable condition and (ii) are, in the case of finished inventory, of a quality
and quantity saleable at full value in the Ordinary Course of Business and, in the case of all other inventories, of a quality
and quantity useable in the Ordinary Course of Business. The inventory obsolescence policies of the Corporation with respect to
the Business are appropriate for the nature of the products sold and the marketing methods used by the Business. Schedule
4.16 sets forth a list of places where inventories of the Business are located as of the Closing Date. There has been no
change in inventory valuation standards or methods with respect to the Inventory in the prior three years. The quantities of any
kind of inventory are reasonable in the current (and the currently foreseeable) circumstances of the Business. None of the Seller
Parties or the Corporation holds any items of inventory on consignment from other persons, and no other person holds any items
of inventory on consignment from the Corporation.

 

Section 4.17 Receivables. 

 

All of the Corporation’s
receivables, including all contracts in transit, manufacturers warranty receivables, notes receivable, accounts receivable, trade
account receivables, and insurance proceeds receivable (“Receivables”) relate to the Business and are enforceable,
represent bona fide transactions, arose in the Corporation’s Ordinary Course of Business and are properly reflected on the
Corporation’s books and records. All of the Receivables are good and collectible receivables, are current and will be collected
in accordance with past practice and the terms of such Receivables (and in any event within six months following the Closing Date)
without any set off or counterclaims. No customer or supplier of the Corporation is entitled to any payment terms other than terms
in the Corporation’s Ordinary Course of Business.

 

Section 4.18 Employees. 

 

Schedule 4.18
contains a complete and accurate list of the following information for each employee of the Corporation: name, job title, date
of hiring or engagement; date of commencement of employment or engagement; current compensation paid or payable and any change
in compensation since December 31, 2013; sick and vacation leave that is accrued but unused; and service credited for purposes
of vesting and eligibility to participate under any Employee Benefit Plan. The Corporation has not has changed the location of
employment of any employee to or from the Business since December 31, 2013. The Corporation is not a party to any collective bargaining
agreement with respect to any of its employees and no collective bargaining agreement determines the terms and conditions of employment
of any person employed in the Corporation. No persons employed by the Corporation are on strike or, to the knowledge of the Seller
Parties, threatening any strike or work stoppage, and there is no pending union representation election or negotiation of a collective
bargaining agreement with respect to persons employed by the Corporation.

 

Section 4.19 Corporation’s
Headquarters

 

The Corporation’s current headquarters
are as described in the Lease Agreement (the “Lease Premises”). The Lease Premises are owned by the Trust free and
clear of any liens, mortgages or other encumbrances on such Lease Premises.

 

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Section 4.20 Accuracy of Information
Furnished.

 

No representation,
statement or information contained in this Agreement, any of the Transaction Documents or any contract or other document made available
or furnished to Purchaser or its representatives by the Seller Parties or the Corporation contains any untrue statement of a material
fact or omits any material fact necessary to make the information contained therein not misleading. All projections and estimates
that have been provided to Purchaser were, at the time of creation, reasonably made in good faith based on reasonable assumptions,
given the circumstances at the time such assumptions were made.

 

ARTICLE 5

REPRESENTATIONS AND WARRANTIES OF PURCHASER

 

Purchaser represents
and warrants to Seller Parties as follows:

 

Section 5.1 Organization of Purchaser

 

Purchaser is an entity
duly organized, validly existing and in good standing under the Laws of the jurisdiction of its organization.

 

Section 5.2 Corporate Authorization

 

Purchaser has full
corporate right, power and authority to enter into this Agreement and to consummate the transactions contemplated hereby, and all
corporate resolutions required to authorize Purchaser to consummate the transactions contemplated hereby have been now or will,
as of the Closing Date, have been adopted. Assuming that this Agreement constitutes the valid and binding obligations of the Seller
Parties, this Agreement constitutes the valid and binding obligation of Purchaser, enforceable in accordance with its terms, except
as the enforceability hereof may be subject to applicable bankruptcy, insolvency, reorganization, or other similar laws affecting
creditors’ rights generally and to general principles of equity.

 

Section 5.3 Consents and Approvals

 

Neither the execution
and delivery by Purchaser of this Agreement, nor the consummation by Purchaser of the transactions contemplated hereby, nor compliance
by Purchaser with any of the provisions hereof will (i) conflict with or result in a breach of any provision of the Articles of
Incorporation or Bylaws of the Purchaser; (ii) violate any order, writ, injunction, decree, judgment, ruling, law, rule or regulation
of any court or governmental authority, applicable to the Purchaser, or any of its properties; or (iii) require any consent, approval,
or authorization of, or notice to, or declaration, filing, or registration with, any governmental or regulatory authority.

 

ARTICLE 6

PRE-CLOSING COVENANTS OF SELLER PARTIES

 

At all times during
the period between the execution of this Agreement and the Closing, the Seller Parties and the Corporation shall do (or refrain
from doing) the following:

 

		(a)	shall continue the operation of the Corporation and the Business in the same manner as the Business
was operated prior to the date of this Agreement, and devote 100% of Ficocelli’s and Homer’s working time and attention
to the conduct of the Business;

 

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		(b)	shall not start any new or continue any existing business, or accept or undertake any employment
or provide any services related to any business of any other person or entity;

 

		(c)	shall not remove, sell or otherwise dispose of any assets, property or equipment of any nature
of the Corporation used in the Business;

 

		(d)	shall not allow any unlawful activity to be conducted on or about the premises upon which the Business
is conducted or at any other place during any Business activity (for example, a delivery of materials to customers) being conducted
by the Corporation;

 

		(e)	shall maintain the general liability and property insurance carried by Seller Parties as of the
date hereof on the Corporation and the property and improvements from and upon which the Corporation operates;

 

		(f)	shall not change, alter or revise the “Employee Rules” for the employees of the Corporation;

 

		(g)	shall not, except as provided in Section 1.2, purchase any equipment out of the ordinary course
of business;

 

		(h)	shall not grant any options or warrants in shares of the Corporation, nor issue any additional
shares of the Corporation; and

 

		(i)	make any distributions of cash, property or other dividends to any Seller Party or to any third
parties.

 

ARTICLE 7

CONDITIONS TO THE OBLIGATIONS OF PURCHASER

 

The obligations of
Purchaser to consummate the transactions contemplated hereby shall be subject to the satisfaction, at or prior to the Closing,
of each of the following conditions, each of which may be waived by Purchaser as provided herein:

 

Section 7.1 Representations and Warranties True

 

The
representations and warranties of the Seller Parties contained in this Agreement shall be true
and correct as of the date when made and at and as of the Closing Date as though such representations and warranties were made
at and as of such date, except (i) for changes expressly permitted or contemplated by this Agreement and (ii) where a representation
or warranty is made as of (or words of similar import) a specific date.

 

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Section 7.2 Performance of Obligations

 

Each
of the obligations of Seller Parties to be performed by Seller Parties on or before the Closing
pursuant to the terms hereof shall have been duly performed and complied with in all material respects on or before the Closing.
Without limiting the generality of the foregoing, Purchaser shall have no obligation to purchase any Shares unless all of the Shares
are tendered to Purchaser at the Closing and until all deliveries to be made by Seller Parties
under Section 2.2 have been tendered.

 

Section 7.3 Satisfactory Financing

 

Purchaser
shall have obtained cash proceeds from a financing transaction sufficient to pay the Purchase Price to the Seller Parties. For
avoidance of doubt, this Agreement shall automatically terminate and be null and void, without further force or effect, if Purchaser
shall not have obtained satisfactory financing for the Purchase Price prior to November 14, 2014, unless all parties mutually elect
to extend such deadline in writing. The Purchaser shall confirm promptly to the Seller Parties in writing when all cash proceeds
to consummate the transaction at Closing have been obtained and are immediately available, confirming the removal of this condition
to Closing (the “Closing Notice”) and providing the Seller Parties with a proposed date for Closing which shall not
be earlier than four (4) business days from the date of such Closing Notice.

 

Section 7.4 Satisfactory Completion of Due Diligence

 

Purchaser
shall have completed (i) its due diligence of the Corporation’s records and been satisfied with such review, in Purchaser’s
sole discretion, and (ii) its environmental due diligence of the premises to be leased under the Lease Agreement (the “Property”),
which may include a “Phase I” environmental and hazardous waste inspection (the “Phase I”) made of the
Property by an environmental engineer selected by Purchaser at Purchaser’s sole cost and expense, and been satisfied with
the results thereof.

 

Section 7.5 Employment Agreements

 

The
Employment Agreements, executed by each of the Employees listed on Schedule 3.5 shall have been delivered to Purchaser with terms
acceptable to Purchaser and providing for such persons’ continuing employment with the Corporation.

 

ARTICLE 8

CONDITIONS TO THE OBLIGATIONS OF SELLER PARTIES

 

The
obligations of the Seller Parties to consummate the transactions contemplated hereby shall
be subject to the satisfaction, at or prior to the Closing Date, of each of the following conditions, each of which may be waived
by the Seller Parties as provided herein:

 

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Section 8.1 Representations and Warranties True

 

The
representations and warranties of Purchaser contained in this Agreement shall be true and correct as of the date when made and
at and as of the Closing as though such representations and warranties were made at and as of such date, except for changes expressly
permitted or contemplated by this Agreement.

 

Section 8.2 Performance of Obligations

 

Each of
the obligations of Purchaser to be performed by it on or before the Closing pursuant
to the terms
hereof shall have been duly performed and complied with
in all material respects on or before the Closing.

 

ARTICLE 9

MONEY DEPOSITS; ESCROW

 

Section 9.1 Earnest Money Deposit 

 

Upon
execution of this Agreement, Purchaser shall deposit with Ficocelli, on behalf of the Seller Parties, the sum of Twenty-Five Thousand
Dollars ($25,000.00) as a good faith, earnest money deposit (the “Earnest Money Deposit”). The Earnest Money Deposit
shall be non-refundable to Purchaser except in the event of Seller Parties’ failure to
close that is not the result of any action or inaction attributable to Purchaser, and in such case shall be retained by Seller
Parties as liquidated damages for any harm or damages suffered by Seller Parties in connection
with the failed Closing. Upon retention of the Earnest Money Deposit by Seller Parties, if Purchaser fails to proceed to
Closing, Seller Parties shall have no further claim hereunder
and Purchaser shall not bear any further liability to Seller Parties for its failure to Close.

 

If,
after receipt of Purchaser’s Closing Notice, the Seller Parties do not make their schedules available for Closing on a date
prior to the November 14, 2014 deadline, or if Seller Parties otherwise breach any of their representations in this Agreement prior
to Closing, the Earnest Money Deposit shall be returned to Purchasers in its entirety, within five (5) business days of the later
of November 14, 2014 or Purchaser’s written request therefor. In such event, should Seller Parties fail to return the Earnest
Money Deposit as provided herein, any costs incurred by Purchaser in connection with the collection of such Earnest Money Deposit,
including but not limited to reasonable attorney fees and court costs, shall be borne by the Seller Parties and shall be reimbursed
to Purchaser.

 

Section 9.2 Escrow Agreement and Deposit of Holdback Deposit
into Escrow

 

At
Closing, the parties will enter into an escrow agreement with Shutts & Bowen, LLP as “Escrow Agent” in the form
of Exhibit 9.2 hereto providing, among other things, for Purchaser’s delivery of a “Holdback” deposit
of One Hundred Fifty Thousand Dollars ($150,000.00) to Escrow Agent at Closing, representing a portion of the Purchase Price to
be held back for a period of nine (9) months following the Closing (the “Holdback Deposit”). Such Holdback Deposit
shall be held by Escrow Agent for the benefit of the Seller Parties except to the extent that any claims under Article 10 below
are made by Purchaser in respect of such Holdback Deposit. The Escrow Agreement provides for the parties to provide joint written
instructions to Escrow Agent as to the release of any funds held in escrow, and each party hereby agrees to comply with the provisions
of this Agreement when executing such instructions to Escrow Agent. Unless any claims are then pending, all funds held in escrow
shall be released from escrow not later than nine months following the Closing Date (the “Escrow Term”). The escrow
shall terminate on the Escrow Term date unless escrow funds are earlier exhausted or as provided under the Escrow Agreement. 

 

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ARTICLE 10

SURVIVAL AND INDEMNIFICATION

 

Section 10.1 Survival of Representations and Warranties,
etc.

 

All
representations and warranties, covenants, agreements, and other undertakings of the parties
contained in this Agreement or in any certificate or other writing delivered pursuant hereto, shall survive
the Closing. The representations and warranties
(but not the covenants, agreements,
or other undertakings) of the parties contained in this Agreement
shall expire on a date twelve (12) months after the Closing;
provided,
however, that
notwithstanding the aforementioned
expiration date, all representations
and warranties of the Seller Parties which relate
to (i) title to the Shares shall survive the Closing without limitation; and (ii) liabilities for Taxes
(Section 4.10) and Environmental, Health and Safety matters (Section 4.13), shall
survive until the termination or expiration
of all applicable statutes of limitations with respect
thereto.

 

Section 10.2 Indemnification Obligations

 

		(a)	Obligation of Seller Parties. Seller Parties shall,
jointly and severally, indemnify, defend, and hold harmless Purchaser from and against any
and all losses, liabilities, damages, obligations, payments,
costs, and expenses (including, without limitation, losses
in the absence
of third party claims, the costs and expenses of any and all actions, suits,
proceedings, judgments,
settlements, and compromises relating thereto,
and reasonable
attorneys’ fees
in connection therewith) (collectively, “Indemnifiable
Losses” and each an “Indemnifiable Loss”) of Purchaser, arising
out of or due to, directly or indirectly, a breach of any of the representations,
warranties, covenants,
agreements, or undertakings of Seller Parties contained
in this Agreement.

 

		(b)	Obligations of Purchaser. Purchaser shall indemnify,
defend,
and hold harmless Seller Parties
from and against any and all Indemnifiable Losses of Seller
Parties arising out of or due to, directly or indirectly, a breach of any of
the representations, warranties,
covenants, agreements,
or undertakings of Purchaser contained
in this Agreement.

 

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Section 10.3 Procedure for Indemnification

 

		(a)	Third Party Claims. If a party entitled to indemnification
pursuant to Section 10.2(a) or Section 10.2(b) (the “Indemnitee”) receives
notice of the assertion by a person who is not a party
to this Agreement of any claim or of the commencement
by any such person of any action or proceeding (a “Third
Party Claim”) with respect to which another party to this Agreement (the “Indemnifying
Party”) is obligated to provide indemnification, the
Indemnitee shall give
the Indemnifying Party notice
thereof promptly after the Indemnitee has actual knowledge of such Third Party Claim. Such notice
shall describe the Third Party Claim in reasonable detail,
and shall indicate the amount (estimated
if necessary)
of the Indemnifiable
Loss that has been or may be sustained
by the Indemnitee.
If, within fifteen (15) days after its receipt of Indemnitee’s notice of such Third Party Claim, the Indemnifying Party provides
a written notice to the Indemnitee that it will indemnify and hold the Indemnitee harmless from all Indemnifiable Losses related
to such Third Party Claim and acknowledging that any losses that may be assessed against the Indemnitee in connection with such
Third Party Claim constitute loses for which the Indemnitee shall be indemnified pursuant to this Article 10, the Indemnitee shall
permit the Indemnifying Party (at the expense of such Indemnifying Party) to assume the defense of such Third Party Claim or any
litigation with a third party resulting therefrom; provided, however, that (i) the counsel for the Indemnifying Party who shall
conduct the defense of such claim or litigation shall be subject to the approval of the Indemnitee, (ii) the Indemnitee may participate
in such defense at the Indemnitee’s expense, (iii) the Indemnitee’s failure to give notice of the Third Party Claim
to the Indemnifying Party as provided herein shall not relieve the Indemnifying Party of its indemnification obligations under
this Agreement except, and only to the extent that, as a result of such failure to give notice, the defense against such claim
is materially impaired, and (iv) the fees and expenses incurred by the Indemnitee prior to the assumption of a Third Party Claim
hereunder by the Indemnifying Party’s shall be borne by the Indemnifying Party. 
Except with the prior written consent of the Indemnitee, no Indemnifying Party, in the defense of any Third Party Claim, shall
consent to entry of any judgment or enter into any settlement that provides for injunctive or other nonmonetary relief affecting
the Indemnitee or that does not include as an unconditional term thereof the giving by each claimant or plaintiff to such Indemnitee
of a general release from any and all liability with respect to such Third Party Claim. Notwithstanding anything herein to the
contrary, the Indemnifying Party shall not be entitled to assume control of the defense against a Third Party Claim if (1) the
claim for indemnification relates to or arises in connection with any criminal or quasi criminal proceeding, action, indictment,
allegation or investigation; (2) the claim seeks an injunction, specific performance or any other equitable or non-monetary relief
against the Indemnitee; (3) the Indemnitee reasonably believes an adverse determination with respect to the Third Party Claim would
be materially detrimental to or materially injure the Indemnitee’s reputation or future business prospects; (4) the Indemnitee
has been advised by counsel that a reasonable likelihood exists of a conflict of interest between the Indemnifying Party and the
Indemnitee; or (5) the Indemnifying Party fails to vigorously prosecute or defend such claim. If the Indemnifying Party does not
accept the defense of a Third Party Claim within thirty (30) days after receipt of the written notice thereof from the Indemnified
Party described above, or fails to notify the Indemnitee of its election as herein provided to accept or reject the defense of
such Third Party Claim, the Indemnitee shall have the full right to defend against any such claim or demand
and may pay, compromise, or defend such Third Party Claim without waiving its claim for indemnification hereunder. In any event,
the Indemnifying Party and the Indemnitee shall reasonably cooperate in the defense of any Third Party Claim and the records of
each shall be reasonably available to the other with respect to such defense., the Indemnitee Notwithstanding the foregoing, neither
the Indemnifying Party nor the Indemnitee shall settle or compromise any claim over the objection of the other; provided, however,
that consent to settlement or compromise shall not be unreasonably withheld. In any event, the Indemnitee and the Indemnifying
Party may each participate, at its own expense, in the defense of such Third Party Claim. If the Indemnifying Party chooses to
defend any claim, the Indemnitee shall make available on a reasonable basis to the Indemnifying Party any personnel or any books,
records, or other documents within its control that are necessary for such defense. If the Indemnifying Party objects to liability
for indemnification hereunder in respect of a Third Party Claim as to which Indemnitee has notified Indemnifying Party (a “Protested
Claim”) hereunder, such Protested Claim shall be submitted to arbitration pursuant to Article 12 hereof for determination
of such Claim’s status as an Indemnifiable Loss hereunder. Any decision of the arbitrator or arbitration panel as to the
Protested Claim shall be final and binding on the parties hereto.

 

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		(b)	Direct Claims. Any claim on account of an Indemnifiable Loss which does not result in a
Third Party Claim (a “Direct Claim”) shall be asserted by written notice given by the Indemnitee to the Indemnifying
Party. The Indemnifying Party shall have a period of thirty (30)
days within which to respond thereto. If the Indemnifying Party does not respond within such thirty (30) day period, the Indemnifying
Party shall be deemed to have accepted responsibility to make payment, and shall have no further right to contest the validity
of such claim. If the Indemnifying Party does respond within such thirty (30) day period and rejects such claim in whole or in
part, the Indemnitee (or the Indemnifying Party) shall be free to submit the matter to arbitration pursuant to Article 12 hereof
for determination of such Claim’s status as an Indemnifiable Loss hereunder. Any decision of the arbitrator or arbitration
panel as to the Protested Claim shall be final and binding on the parties hereto.

 

		(c)	Purchaser Claims Approved
for Satisfaction. The following shall be deemed to be “Claims Approved for Satisfaction”
from the Holdback Deposit in escrow or, once the Holdback Deposit is exhausted, by abatement of Purchaser’s rent obligations
under the Lease Agreement, as provided in Section 10.5: (i) the amount of any final assessment against Purchaser arising from any
Third Party Claim as to which Purchaser has notified Seller Parties and Seller Parties have assumed such claim in writing pursuant
to Section 10.3(a) hereof; (ii) the amount of any final assessment against Purchaser arising from any Third Party Claim as to which
an arbitration award or decision has confirmed such claim as indemnifiable by Seller Parties; (iii) the amount of any Direct Claim
as to which Seller Parties have accepted responsibility or failed to timely disclaim as provided under Section 10.3(b) hereof;
and (iv) the amount of any Direct Claim as to which an arbitrator or arbitration panel has confirmed such claim as indemnifiable
by Seller Parties. 

 

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		(d)	Requirement to Provide Joint Written Instruction.
In the event that Purchaser presents a Claim Approved for Satisfaction to Escrow Agent for payment thereon from the Holdback Deposit,
Purchaser and Seller Parties shall be required to provide a joint written instruction as to payment of such claim. 

 

Section 10.4 Limitations

 

The indemnification
provisions of this Section 10 shall be Purchaser’s exclusive remedy for any breach by Seller Parties of the representations,
warranties, covenants or agreements set forth in this Agreement. Seller Parties shall have no liability to Purchaser with respect
to any claim under Section 10.2(a) hereof until the total of all damages with respect to such claim exceeds twenty-five thousand
dollars (U.S. $25,000) and then, only for the amount by which such claim exceeds twenty-five thousand dollars (U.S. $25,000). In
addition, anything to the contrary herein notwithstanding, Seller Parties shall have no aggregate liability to Purchaser with respect
to all claims under Section 10.2(a) hereof in an amount in excess of three million dollars (U.S. $3,000,000). By way of clarification
only, the Holdback Deposit is intended to facilitate indemnification payments under this Article 10, but shall in no way be interpreted
as a limitation of the aggregate liability hereunder.

 

Section 10.5 Purchaser’s Right of set-Off/Abatement
from Lease Obligations

 

In the event that any
claim for an Indemnifiable Loss is brought hereunder by Purchaser after the Holdback Deposit has been exhausted or after the end
of the Escrow Term, the Purchaser shall have the right to recover the amount of any such claim for Indemnifiable Loss by set-off
or cancellation against, or abatement of, any rent or other payment obligations of Purchaser under the Lease Agreement, up to an
aggregate of One Hundred Fifty Thousand and NO/100 Dollars ($150,000.00), following the procedures for claims set forth in this
Article 10. Any Claim Approved for Satisfaction may be automatically deducted by Purchaser from its obligations under the Lease
Agreement, after first exhausting the available Holdback Deposit.

 

Section 10.6 Indemnification Payments

 

To the extent that
any indemnification payments to which Purchaser is entitled under this Article 10 exceed the Holdback Deposit after payments have
been made in accordance with the terms of the Escrow Agreement, and exceed any amounts recoverable pursuant to Purchaser’s
right under Section 10.5 to set-off against its obligations under the Lease Agreement, the Seller Parties shall pay such difference
to the Purchaser in immediately available funds, up to the limits established in Section 10.4.

 

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ARTICLE 11

TERMINATION AND ABANDONMENT

 

Section 11.1 Termination

 

This
Agreement may be terminated at any time prior to the Closing:

 

		(a)	By mutual consent
of Purchaser and Seller Parties; or

 

		(b)	By either Seller Parties or Purchaser
if, without fault of the terminating party, the Closing shall not have occurred by the date for such Closing pursuant to Section
2.1 hereof, which date may be extended only by mutual agreement of Purchaser and Seller Parties.

 

The date on which this
Agreement is terminated pursuant to this Section is herein referred to as the “Termination Date.”

 

Section 11.2 Effect of Termination

 

Except for
the obligations contained in Section 11.3, all obligations
of the parties hereto under this Agreement
shall terminate as of the Termination Date, and there shall
be no liability, except liability
for any breach of this Agreement prior to such termination, of any
party to another party.

 

Section 11.3 Expenses on Termination

 

Each
party hereto
shall pay all of the fees
and expenses
incurred by it in connection herewith in the event
this Agreement is terminated pursuant to Section
11.1.

 

ARTICLE 12

ARBITRATION

 

Any and all disputes, disagreements and
matters in question between Seller Parties and Purchaser arising out of or relating to this Agreement, including, but not limited
to, disputes, disagreements or matters in question concerning a party’s liability as an Indemnifying Party for any Indemnifiable
Loss under Article 10, breach of warranty, breach of contract, representations or omissions, and all torts and statutory causes
of action (collectively, "Arbitrable Claims") shall be resolved exclusively by binding arbitration in accordance with
the Commercial Arbitration Rules of the American Arbitration Association ("AAA") in effect as of the date of this Agreement
(unless the parties mutually agree otherwise). The arbitrator or arbitration panel will decide all Arbitrable Claims between the
parties in accordance with the substantive laws of the State of Florida, without regard to its choice of law provisions or principles
which might otherwise call for the application of a different State's law. No party may initiate any arbitration proceeding concerning
an Arbitrable Claim unless and until such party has first delivered to the other parties hereto, written notice specifically identifying
the dispute, disagreement or matter in question (the “Notice of Dispute’), and provided such other parties a reasonable
opportunity to settle the dispute, disagreement or matter in question, but in no case less than thirty (30) days after the date
the Notice of Dispute is delivered to such other parties. Notwithstanding the foregoing, in the event of a request for arbitration
relating to a Protested Claim, the Notice of Dispute shall be dispensed with and the party seeking resolution of its indemnification
status in connection with such Protested Claim may proceed directly to arbitration after giving the other party or parties hereto
five (5) business days’ prior written notice of its intent to arbitrate.

 

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The foregoing agreement shall be specifically
enforceable under applicable law in any court having jurisdiction thereof. The award rendered by the arbitrator or arbitrators
shall be final, and judgment may be entered upon it in accordance with applicable law in any court having jurisdiction thereof.
If a party uses litigation to enforce the parties' agreement to arbitrate or the arbitration award, the court will award such party
its court costs and reasonable attorneys' fees at all levels, including, without limitation, at trial, on appeal, in bankruptcy
and with respect to post-judgment collection efforts.

 

The parties agree that the final decision
reached pursuant to dispute resolution procedure selected pursuant to this Agreement shall be binding on the parties hereto.

 

ARTICLE 13

LEGAL REPRESENTATION

 

Each
of Purchaser and Seller
Parties hereby acknowledges
that Shutts & Bowen LLP (“Shutts & Bowen”) has, from
time to time, provided
legal services to Purchaser,
and Shutts & Bowen may
continue to provide such services in the future. In light
of the foregoing, each of Purchaser and Seller Parties
hereby waive any and all conflicts of interest,
whether potential or actual, arising out of Shutts & Bowen’s representation
of Purchaser in connection with the transactions contemplated
by this Agreement. In addition, Seller Parties specifically acknowledge
that Shutts & Bowen has provided legal representation exclusively to Purchaser (and to no other party or person) in connection
with the transactions contemplated by this Agreement.

 

ARTICLE 14

MISCELLANEOUS

 

Section 14.1 Books and Records

 

As
used in this Agreement, “Books and Records” shall mean
all records pertaining
to the assets, properties,
business, operations, accounts,
financial condition, suppliers or customers
of the Corporation, regardless of whether
such books and
records are maintained
for tax or financial reporting purposes. 

 

Section 14.2 Headings; Grammatical Usage

 

The
descriptive headings
of the several Articles and Sections of this Agreement
are inserted
for convenience only
and do not constitute a part of this Agreement.
In construing this
Agreement, feminine
or neuter pronouns shall be substituted for those masculine
in form and vice versa, and plural terms shall be substituted
for singular terms
and vice versa, in
any place in which the context so requires.

 

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Section 14.3 Notices

 

Any
notices or other communications required or permitted hereunder shall be given in writing and shall be delivered or sent by certified
or registered mail, postage prepaid, addressed as follows:

 

	If to Purchaser, to:	MagneGas Corporation
	 	150 Rainville Rd.,
	 	Tarpon Springs, FL 34689
	 	Attention: Ermanno Santilli, President
	 	 
	If to Seller Parties, to:	Robert A. Ficocelli, individually and as Trustee
	 	of the Robert A. Ficocelli Revocable Trust
	 	11131 117th Lane North
	 	Seminole, Florida  33768
	 	 
	 	Stephen R. Homer
	 	6973 81st Avenue North
	 	Seminole, Florida  33781

 

or to such other address as shall be furnished
in writing by such party, and any such notice or communication shall be effective and be
deemed to have been given as of the date so
mailed; provided that any notice or communications changing
any of the addresses set forth above shall be effective and deemed given only upon its receipt.

 

Section 14.4 Assignment

 

This
Agreement and all of the provisions hereof shall be binding
upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns, but neither this Agreement
nor any of the rights, interest, or obligations hereunder shall be assigned
by any of the parties hereto without the prior written consent of the other parties.

 

Section 14.5 Complete Agreement

 

This
Agreement and each of the Exhibits and Schedules hereto
contain the entire understanding of the parties with respect to the transactions contemplated hereby and supersede all prior arrangements
or understandings with respect thereto. There are no agreements,
promises, warranties, covenants, or undertakings
other than those expressly set forth herein or therein.

 

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Section 14.6 Modifications, Amendments and Waivers

 

At
any time prior to the Closing, to the extent
permitted by law, (i) the parties hereto may,
by written agreement,
modify, amend,
or supplement any term or provision of this Agreement
and (ii) any term or provision of this Agreement may be
waived in writing by the party
which is entitled to the benefits thereof.

 

Section 14.7 Severability 

 

The provisions of this
Agreement will be deemed severable and the invalidity or unenforceability of any provision will not affect the validity or enforceability
of the other provisions hereof; provided, however, that if any provision of this Agreement, as applied to any Party or to any circumstance,
is judicially determined not to be enforceable in accordance with its terms, the Parties agree that the court judicially making
such determination may modify the provision in a manner consistent with its objectives such that it is enforceable, and/or to delete
specific words or phrases, and in its modified form, such provision will then be enforceable and will be enforced.

 

Section 14.8 Expenses

 

Except as otherwise
expressly provided in this Agreement, each Party will bear its own costs and expenses incurred in connection with the preparation,
execution and performance of this Agreement and the transactions contemplated hereunder, including all fees and expenses of agents,
representatives, financial advisors, legal counsel and accountants.

 

Section 14.9 Counterparts

 

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

 

Section 14.10 Governing Law

 

This Agreement shall
be governed by the laws of the State of Florida (regardless of the laws that might be applicable under principles of conflicts
of law) as to all matters, including, but not limited to, matters of validity, construction, effect, and performance.

 

[Signatures appear on
next page]

 

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IN WITNESS WHEREOF,
each of the parties hereto has executed this Agreement as of the day and year first above written.

 

WITNESSES:

 

	 	 	 	 
	 	 	 	Robert Ficocelli, as trustee of the Robert A.
	 	 	 	Ficocelli Revocable Trust
	 	 	 	 
	 	 	 	 
	 	 	 	Robert Ficocelli, individually
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	Stephen R. Homer, individually
	 	 	 	 
	 	 	 	“Seller Parties”
	 	 	 	 
	 	 	 	MAGNEGAS CORPORATION
	 	 	By:	 
	 	 	 	Ermanno Santilli, President
	 	 	 	 
	 	 	 	“Purchaser”

 

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ADDENDUM TO RETAIL LEASE

 

This Addendum to Commercial
Lease and Deposit Receipt (this "Addendum") is attached to and incorporated into and forms an integral part of that certain
Commercial Lease and Deposit Receipt (the "Lease") by and between ROBERT FICOCELLI, an individual (“LESSOR”),
and MAGNEGAS CORPORATION, a Florida foreign profit corporation (“LESSEE”). Capitalized but undefined terms used
in this Addendum have the meaning set forth in the Lease. This Addendum shall be read consistent with the terms of the Lease, but
in the event of any conflict between the provisions of the Lease and the provisions of this Addendum, the provisions of this Addendum
will control as to the conflicting provisions.

 

		1.	Permitted Use. As used in the Lease, the term "Use" means a first class delicatessen
similar to those found in other Class A office buildings located in the same market / trade area in which the Building is located
with limited in-Premises dining (no table service) and serving hot and cold breakfast and lunch fare and entrees including, without
limitation, soups and sandwiches and hot and cold beverages (but no beer, wine or other alcoholic beverages) and other outgoing
food orders and preparation incidental thereto. Lessor hereby approves of Lessee's menu attached hereto as Annex 1. Without limitation
of the above, any material change in such menu shall require Lessor's prior written consent, such not to be unreasonably withheld
unless such change would conflict with any exclusive use right of any other Lessee in the Building or otherwise cause Lessor to
be in breach of any other lease or agreement, in which case Lessor may withhold consent in its sole discretion. Lessee's pricing
shall not exceed pricing for similar offerings and services in other delicatessen's serving Class A office buildings in the same
market/trade area as the Building.

 

		2.	Trade Name. Lessee shall operate and conduct its business in the Premises under the trade
name ________________________and no other trade name without Lessor's prior written approval.

 

		3.	Operation.

 

		(i)	Lessee shall commence its business operations in the Premises not later than the Commencement Date
and thereafter shall conduct its business in the Premises continuously during the hours of 7:00 a.m. through 3:00 p.m., Monday
through Friday, excluding Holidays ("Minimum Operating Hours"). Lessee shall in no event be open for business during
other than the Building's Business Hours without Lessor's consent.

 

		(ii)	Lessee acknowledges that its continued occupancy of the Premises and the regular conduct of its
business therein during the Minimum Operating Hours are of utmost importance to neighboring Lessees and to Lessor in the renting
of space in the Building, the renewal of other leases therein, the efficient and economic supply of services and utilities, and
in the character and quality of the other Lessees in the Building. Lessee therefore covenants and agrees that throughout the Term
of this Lease it will occupy the entire Premises and comply strictly with the provisions of the Lease and shall keep the Premises
properly equipped and stocked with an adequate supply of food and drink items and open to the public for business with adequate
trained personnel in attendance. Lessee acknowledges that Lessor is executing the Lease in reliance thereupon and that the same
is a material element inducing Lessor to execute this Lease.

 

    	 

    	 

    

 

 

		(iii)	Lessee shall operate its business within the Premises in a manner consistent with the first-class
level of services, which Lessor wishes to have provided to the occupants of the Building, and shall maintain a neat, clean,
wholesome and reputable environment. Toward this end, Lessor may choose to conduct, from time to time during the Term, Lessee surveys
to establish the opinions of the occupants of the Building as to the amenities and retail operations, including Lessee's operations
within the Project.

 

		(a)	In the event the results of any of Lessor's Lessee surveys indicate that more than thirty percent
(30%) of the occupants of the Building responding to such survey (with a minimum requirement of twenty-five percent (25%) of all
occupants of the Building responding for the survey to be valid) have expressed an opinion of Lessee's operation as being substandard,
Lessor may give Lessee notice of such substandard performance ("Substandard Performance Notice") describing in detail
the nature of its substandard performance. Lessee shall take immediate steps to improve the quality of its operation and to remedy
such substandard performance. Lessee's performance during the three (3) months following Lessee's receipt of a Substandard Performance
Notice shall be the "Cure Period". Within thirty (30) days after the conclusion of the Cure Period, Lessor shall again
survey the occupants of the Building to determine if, in their opinion, the substandard performance has been corrected. If the
survey results continue to indicate that more than thirty percent (30%) of the occupants of the Building responding to such survey
(with a minimum requirement of twenty-five percent (25%) of all occupants of the Building responding for the survey to be valid)
have indicated that Lessee has not remedied such substandard performance, Lessor may, within forty-five (45) days after Lessor
compiles the results of the Lessee survey, elect to terminate this Lease by giving notice to Lessee, such termination to be effective
as of the date specified in Lessor's notice, such to be not less than forty-five (45) days later upon which this Lease shall terminate
(the "Termination Date").

 

		(b)	If at least twenty-five percent (25%) of all occupants of the Building indicate in their survey
response that they desire additional menu items be provided by Lessee and such are consistent with the required Use of the Premises
and Lessee's provision thereof would not cause Lessor to be in violation of any exclusive use right of any other Lessee or of any
other agreement affecting the Project, upon request by Lessor Lessee shall use reasonable efforts to provide such additional menu
items.

 

    	 

    	 

    

  

		4.	Restrictions on Use.

 

		(i)	Lessee (or anyone acting through, for, or in place of Lessee) shall not conduct or advertise on
or from or pertaining to the Premises any auction or closing-out wholesale business, nor shall Lessee grant any concession, license,
or permission to any third party to sell or take orders for merchandise or services from the Premises.

 

		(ii)	Lessee shall not cause or maintain any nuisance in or about the Premises, and shall keep the Premises
free of debris, rodents, vermin and anything of a dangerous, noxious or offensive nature or which could create a fire hazard (through
undue load on electrical circuits or otherwise) or undue vibration, heat or noise. Lessee shall not permit any objectionable or
offensive noise or odors to be emitted from the Premises; or do anything, or permit anything to be done, which would, in Lessor's
opinion, disturb or tend to disturb other Lessees occupying leased space in the Building. If, within fifteen (15) days of receipt
of written notice, Lessee does not act upon a request from Lessor that Lessee control any such odors, then Lessor shall have the
right to take reasonable steps to cure the problem, and Lessee shall reimburse Lessor within thirty (30) days thereafter for the
costs thereof.

 

		(iii)	Lessee shall not use in the Premises sound equipment (such as loudspeakers, broadcasts and telecasts)
in a manner seen or heard outside the Premises, and shall not place or keep any merchandise or other things in the Common Areas.

 

		5.	Permits and Licenses. Lessee
                                         shall procure at its sole expense any permits and licenses required for the transaction
                                         of business in the Premises for the Use. At Lessor's request, Lessee shall deliver to
                                         Lessor copies of all such permits and licenses and proof of Lessee's compliance with
                                         all such Laws. Lessee prominently shall display all such licenses and permits in the
                                         Premises as required by law and otherwise comply with all applicable laws, ordinances
                                         and governmental regulations governing Lessee's use and occupancy of the Premises including,
                                         without limitation, those regarding cleanliness, health and hygiene pertaining to food
                                         storage, preparation and service.

 

		6.	Employee Dress and Conduct. Lessee shall make whatever arrangement with its own employees
it deems appropriate regarding the purchase of and maintenance of the standard uniforms, however, Lessee shall require the standard
uniforms to be worn by all of its employees at all times while on duty in the Premises so that all employees present a clean and
well-groomed appearance. Lessor may, at any time, direct Lessee to require any of its employees not so attired to immediately conform
to the requirements of this Section or leave the Building. In no event shall Lessee permit its employees to use any portion of
the Common Areas, including but not limited to any public washrooms located therein, for the changing of clothes or for the storage
of their personal effects nor shall Lessee permit its employees to loiter at the entrance to the Premises or in the Common Areas
of the Project

 

    	 

    	 

    

  

		7.	Fixtures and Equipment. Lessee shall install and maintain at all times in the Premises modern
and high quality fixtures, furnishings, fittings and equipment adequate, appropriate and properly laid out to sustain Lessee's
sales and operations. All equipment installed or used by Lessee in the Premises shall be properly installed and, where necessary,
with adequate electrical wiring in conformity with the recommendations of the manufacturers thereof and with all applicable codes
and ordinances. All electrical equipment shall have been tested and approved by the Underwriter's Laboratory or similar safety
testing organization. No equipment shall be used by Lessee in the Premises unless and until such equipment and the installation
thereof has been inspected and approved by the departments or bureaus of the City of Atlanta, Georgia and Fulton County, Georgia
and other governmental authorities having jurisdiction and unless, until and only for so long as all necessary permits and authorizations
for the use and/or operation thereof have been obtained by Lessee from such authorities at Lessee's sole cost and expense.

 

		8.	Use of Lessor's Personal Property in Premises. Reference is made hereby to the fixtures
and equipment attached to this Addendum as Annex 2 (collectively, the "Equipment") and which is the property of
Lessor. Lessor agrees that it will allow the Equipment to remain in the Premises and Lessor has no objection to Lessee's use thereof,
all without representation or warranty or covenant of Lessor with respect thereto. Lessee shall not remove any of the Equipment
during the initial Term (or any extension thereof) without Lessor's consent and then only if Lessee replaces such Equipment with
new equipment of similar quality and function. Upon expiration of the Term or such earlier termination of the Term of this Lease,
the Equipment shall remain the personal property of Lessor and shall not be removed from the Premises. Lessee shall maintain the
Equipment in good condition and repair during the Term and use the Equipment only for purposes intended and in compliance with
all laws, and in the event Lessee replaces any of the Equipment, such replacement Equipment shall thereafter be deemed Equipment
and shall be the personal property of Lessor upon the expiration or early termination of this Lease. LESSOR MAKES NO REPRESENTATION
OR WARRANTY REGARDING THE CONDITION OF THE EQUIPMENT AND SHALL HAVE NO OBLIGATION TO MAINTAIN, REPAIR OR REPLACE ANY OF THE EQUIPMENT.
LESSEE ACCEPTS THE USE OF THE EQUIPMENT DURING THE TERM ON AN "AS IS, WHERE IS" BASIS WITH ALL FAULTS AND WITHOUT ANY
WARRANTIES, EXPRESS OR IMPLIED (INCLUDING ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR TITLE).

 

		9.	Promotion.

 

		(i)	Lessee shall display such name as Lessor may from time to time designate for the retail area(s)
of the Building, and in material which is given, visible or available to customers of Lessee upon the Premises and shall promote
such name in any advertisements or promotional material published or initiated by Lessee in regard to its business from the Premises.

 

		(ii)	Lessee shall not advertise the business, profession or activities of Lessee conducted in the Project
in any manner which violates the letter or spirit of any code of ethics adopted by any recognized association or organization pertaining
to such business of Lessee, and shall never use any picture or likeness of the Building or the Project or reference in any circulars,
notices, advertisements or correspondence without Lessor's prior written consent, such not to be unreasonably withheld. Without
limiting the forgoing, Lessee shall not disturb, solicit, or canvass any occupant of the Project without Lessor's consent, such
not to be unreasonably withheld. Lessee shall submit any such proposed advertising materials or media to Lessor, and Lessor shall
have five (5) business days to approve or disapprove the materials and/or media submitted. Lessee shall only advertise with regard
to the Building or the Project in a manner reasonably acceptable to Lessor.

 

    	 

    	 

    

  

		10.	Windows and Lighting. Lessee shall maintain all display windows' or other glass windows
of its store in a neat, attractive condition, and shall keep all display windows, exterior signs and exterior lighting lighted
during Business Hours.

 

		11.	Signs and Store Front. Lessee shall not, without Lessor's prior written consent, (a) make
any changes to the store front, or (b) install any exterior lighting, decorations, paintings, awnings, canopies or the like, or
(c) erect or install any signs, window or door lettering, placards, decorations or advertising media of any type which can be viewed
from the exterior of the Premises, excepting only dignified displays of customary type for its display windows. All signs, lettering,
placards, decorations and advertising media shall conform in all respects to the sign criteria established by Lessor from time
to time in the exercise of its reasonable discretion, and shall be subject to Lessor's requirements as to construction, method
of attachment, size, shape, height, lighting, color and general appearance and in compliance with any applicable sign ordinance,
rules or regulations for the municipality in which the Building is located. All signs shall be kept in good condition and in proper
operating order at all times.

 

		12.	Deliveries. Lessee shall accept delivery of and ship goods and merchandise from the Premises
only in the manner and at such times and in such areas as may be designated by Lessor and conform to all rules and regulations
adopted by Lessor with respect thereto, including, but not limited to, security arrangements with respect to shipping and receiving
areas and the transport of goods and merchandise to and from the Premises. Lessee agrees that Lessee shall be solely responsible
for the security of Lessee's goods and merchandise in the Premises and elsewhere in the Project, including, but not limited to,
all goods and merchandise in, on or about any shipping and receiving areas, in any trucks, cars or other vehicles located in such
areas, or in the process of being transferred to or from such areas. Lessor, its agents and employees are not authorized to and
shall not accept any responsibility for and shall not be liable for the safety of or security of any of Lessee's goods or merchandise
at any time wherever located. Because of the unique nature of Lessee's business, Lessee further agrees that:

 

		(i)	it will not permit any deliveries of goods or merchandise at any time when Lessee's employees are
not available to receive same;

 

		(ii)	it will not permit any goods or merchandise to remain in, on or near any doorways, loading docks,
receiving areas or other portions of the Project; any goods or merchandise remaining in such areas shall be deemed to be trash
and may be disposed of by Lessor in such manner as Lessor may deem advisable and without liability to Lessee thereof;

 

    	 

    	 

    

  

		(iii)	it will require that all purveyors with whom Lessee does business adequately and securely package
all goods and merchandise so as to prevent any leaking, spilling, spoilage, odors or infestation;

 

		(iv)	if any leaking or spilling shall occur or if any goods and merchandise shall fall out of any containers
or packages, Lessee shall be responsible for and shall immediately cause the same to be cleaned and removed and restore any damage
to the common areas that may result therefrom; and

 

		(v)	it will immediately transfer all goods and merchandise received to the Premises and properly store
the same in the Premises so as to retard any spoilage thereof, to prevent any odors emanating therefrom and to prevent the infestation
thereof

 

		13.	Sanitation and Janitorial. Lessor's Standard Services do not include janitorial services
to the Premises. Lessee, at its sole cost and expense, shall be solely responsible for all cleaning and sanitation of and janitorial
services to the Premises and shall keep the Premises and service-ways and loading areas adjacent to the Premises neat, clean and
free from waste, dirt, garbage, rubbish, insects and pests at all times, and shall store all trash and garbage within the Premises
and/or within the areas designated by Lessor for trash pickup and removal and only in the receptacles prescribed by Lessor, all
at Lessee's sole cost and expense. Without limitation of the above, Lessee shall perform all cleaning, sanitation and janitorial
services within the Premises at Lessee's expense and on a daily basis consistent with cleaning and sanitation standards, if any,
established by Lessor for food service establishments and consistent with other Class A buildings in Atlanta, Georgia but in no
event to standards less than that required by applicable laws. Notwithstanding the above, without Lessor's prior written consent,
Lessee shall not employ any third parties (other than employees of Lessee) to provide any cleaning, sanitation or janitorial service
to the Premises. If Lessor consents to third party janitorial service, the same shall be subject to the Lessor rules and regulations
for contracted services and to Lessor's supervision, but at Lessee's sole cost and expense. If, in Lessor's sole judgment, the
Premises require a professional cleaning, Lessor shall contract with a janitorial service and Lessee shall pay the cost thereof
to Lessor plus Lessor's standard administration fee within thirty (30) days after demand.

 

		14.	Exterminating. Lessee shall, at its sole cost and expense, engage professional exterminators
to service the Premises, including but not limited to all food preparation and food storage areas, at such frequency and to the
extent necessary to keep the Premises free of insects, rodents, vermin and other pests and to prevent insects, rodents, vermin
and other pests from the Premises infesting spaces leased to other Lessees or the Common Areas of the Project. Lessee shall provide
to Lessor, upon demand, reasonable proof that Lessee is causing such exterminating to be performed not less frequently than quarterly.
In the event that Lessee shall refuse or fail to have such exterminating regularly performed, then Lessor may arrange for such
exterminating to be done, and Lessee shall pay the entire cost thereof plus Lessor's standard administrative fee. Lessor shall
not be liable to Lessee for any loss or damage that may accrue to Lessee's stock in trade or business by reason thereof, including
but not limited to any loss of revenues resulting from any required limitation or cessation of Lessee's business while such extermination
is performed or as a result thereof. Lessor's arranging for such extermination shall not release Lessee from Lessee's obligations
hereunder nor shall the same be deemed to be a waiver by Lessor of Lessee's default for the failure to have such extermination
performed.

 

    	 

    	 

    

  

		15.	Exhaust Systems. Cleaning and Degreasing.

 

		(i)	Lessee shall, at its sole cost and expense, prior to opening for business in the Premises and at
all times thereafter during the Term, provide the necessary exhaust fans and systems, ductwork and venting to ensure that all smoke,
odors, vapors and steam are exhausted from the Premises. Such systems shall be installed so as to prevent the discharge of smoke,
odors, vapors and steam into the Common Areas of the Building or into spaces leased to others and to avoid the likelihood that
such smoke, odors, vapors and steam will be directed to or carried to the Common Areas of the Project or into spaces leased by
others. Lessee's exhaust or venting systems shall include fire prevention and/or extinguishment facilities or systems as may be
reasonably required from time to time in view of Lessee's methods and volume of cooking and other food and beverage preparation.
This shall be in addition to any sprinkler or other fire protection facilities installed in the Premises.

 

		(ii)	No exhaust vents, flues, pipes or other outlets shall be installed through the walls, floor or
ceiling of the Premises or through any portion of the Building (including but not limited to the exterior walls or the roof of
the Building) without the written consent of Lessor as to the location, construction and appearance thereof. Lessor may require
that Lessee's exhaust system(s) be connected to pipes, stacks, flues, vents or other facilities located outside the Premises and
intended for use by Lessee and other food preparation facilities in the Building. In such event, Lessee shall provide the necessary
pipes, vents, ductwork and other facilities to connect Lessee's exhaust system thereto. Lessor shall not, by its approval of the
location, construction or appearance of any of Lessee's exhaust system or facilities in the Premises or elsewhere on the Project,
be deemed to have represented that such systems are adequate or that the same comply with any applicable law, ordinance or regulation,
nor shall such approval be deemed a waiver by Lessor of the right to require that Lessee modify such systems or facilities or add
other or additional such systems or facilities in order to prevent the discharge of smoke, odors, vapors and steam into the Common
Areas of the Project or into spaces leased to others or to avoid such smoke, odors, vapors and steam being directed to or carried
to the Common Areas of the Project or into spaces leased to others.

 

		(iii)	Lessee shall, at its sole cost and expense, adequately clean or provide for the cleaning of all
exhaust and venting systems serving the Premises at such times as needed for the proper maintenance of a first-class café,
but in no event less frequently than one (1) time every six (6) calendar months. This cleaning shall include degreasing of all
hoods, fans, vents, pipes, flues, grease traps and other areas of such systems subject to grease buildup. Lessee shall provide
to Lessor, upon demand, reasonable proof that Lessee is doing such cleaning and degreasing or causing it to be done. In the event
Lessee fails to timely perform any such activities required to be performed by Lessee and such failure continues for a period of
five (5) days following Lessee's receipt of written notice from Lessor of such failure, Lessor shall have the right (in addition
to all other rights and remedies available to Lessor under the Lease with respect to a Lessee's Default to enter the Premises and
perform (or cause to be performed) such activities that Lessee has failed to perform, and in such case, (i) Lessee shall reimburse
Lessor, within five (5) days following receipt of an invoice therefore, for all costs incurred by Lessor in connection with the
performance of such activities plus Lessor's standard administrative fee, and (ii) Lessee shall indemnify and hold Lessor harmless
from and against any and all claims, causes of action, liabilities, damages and expenses suffered or incurred by Lessor in connection
with Lessor's exercise of its rights under this Addendum, regardless of cause, EVEN IF CAUSED, IN WHOLE OR IN PART, BY THE NEGLIGENCE
OF LESSOR OR ANY OF ITS EMPLOYEES, AGENTS, CONTRACTORS, OR REPRESENTATIVES.

 

    	 

    	 

    

  

		16.	Grease Traps, Sewers and Catch Basins.

 

		(i)	Lessee shall, at its sole cost and expense, prior to opening for business in the Premises and at
all times thereafter during the Term, provide the necessary piping, connections, grease traps, catch basins and other facilities
for the removal of all waste liquids from the Premises in compliance with all applicable codes and ordinances of Atlanta, Georgia
and Fulton County, Georgia and other governmental authorities having jurisdiction. Lessor may require that Lessee's waste liquid
removal equipment include ejector pumps. Such facilities shall be connected to the sewers and mains provided by Lessor, and shall
be constructed so as to prevent the backing up or discharge of any such waste liquids into the Premises or into spaces leased to
others or into the Common Areas of the Project.

 

		(ii)	No pipes, connections, grease traps, catch basins or other facilities shall be installed through
the walls, floor or ceiling of the Premises or through any portion of the Building (including but not limited to the exterior walls
or the foundation of the Building) without the written consent of Lessor as to the location and construction thereof Lessor may
require that Lessee's facilities be connected to pipes, risers, catch basins or other facilities located outside the Premises and
intended for use by Lessee and other food preparation facilities in the Project. In such event, Lessee shall provide the necessary
pipes, connections and other facilities to connect Lessee's facilities thereto, Lessor shall not, by its approval of the location
or construction of any of Lessee's waste liquid disposal facilities in the Premises or elsewhere on the Project, be deemed to have
represented that such facilities are adequate or that the same comply with any applicable law, ordinance or regulation, nor shall
such approval be deemed a waiver by Lessor of the right to require that Lessee modify such facilities or add other or additional
facilities to provide adequate waste liquid removal capacity for Lessee's use of the Premises or in order to prevent the discharge
of such waste liquids or odors therefrom into the Premises or into spaces leased to others or into the Common Areas of the Project.

 

		(iii)	Lessee shall not dispose of waste grease, oil or other materials which tend to cause clogging or
blockage of pipes and drains (hereinafter collectively referred to as "grease") by pouring or permitting the same to
flow into any drains or pipes. In the event that Lessee shall do so, Lessee shall reimburse Lessor for the entire cost of cleaning
of all drains, pipes, sewers or other waste liquid disposal facilities damaged thereby plus Lessor's standard administrative charge.
For this purpose, the term "cleaning" shall be deemed to include the replacement of all or any portion of the waste liquid
disposal facilities necessitated by Lessee's improper disposal of grease.

 

    	 

    	 

    

 

		(iv)	Lessee shall regularly (but not less frequently than monthly) and adequately clean or provide for
the cleaning of all grease traps, catch basins and similar facilities serving the Premises. Lessee shall not use any chemicals
or other cleaning methods which could damage the drain pipes or other portions of the drainage and/or sewer system in the Premises
or in or serving the Project. Lessee shall provide to Lessor, upon demand, reasonable proof that Lessee is regularly doing such
cleaning or causing it to be done. In the event Lessee fails to timely perform any such activities required to be performed by
Lessee and such failure continues for a period of five (5) days following Lessee's receipt of written notice from Lessor of such
failure, Lessor shall have the right (in addition to all other rights and remedies available to Lessor under the Lease with respect
to a Lessee's Default to enter the Premises and perform (or cause to be performed) such activities that Lessee has failed to perform,
and in such case, (i) Lessee shall reimburse Lessor, within five (5) days following receipt of an invoice therefore, for all costs
incurred by Lessor in connection with the performance of such activities plus Lessor's standard administrative fee, and (ii) Lessee
shall indemnify and hold Lessor harmless from and against any and all claims, causes of action, liabilities, damages and expenses
suffered or incurred by Lessor in connection with Lessor's exercise of its rights under this Addendum, regardless of cause, EVEN
IF CAUSED, IN WHOLE OR IN PART, BY THE NEGLIGENCE OF LESSOR OR ANY OF ITS EMPLOYEES, AGENTS, CONTRACTORS, OR REPRESENTATIVES.

 

		17.	Gas. If Lessee desires to have gas service in the Premises for cooking (no other use of
gas being permitted in the Project), Lessee shall be responsible for the installation of necessary pipes and other facilities to
connect the Premises to the gas supply lines in the Projector, if not such connections are existing, to the gas supply lines of
the public utility providing gas service. All such installations shall be in accordance with and subject to the other provisions
of the Lease. If gas connections are provided within the Project, Lessor reserves the right to submeter gas to the Premises in
which event Lessee shall pay to Lessor the cost of such service (without markup by Lessor) within fifteen (15) days after invoice
as Additional Rent. Otherwise, Lessee shall contract directly with the public utility providing gas service and shall pay the entire
cost of such gas service and the cost of metering (including meter installation) directly to such provider.

 

    	 

    	 

    

 

COMMERCIAL LEASE AND DEPOSIT RECEIPT

 

RECEIVED FROM Equipment Sales
and Service, Inc., a Florida corporation, hereinafter referred to as Lessee, the sum of TWELVE THOUSAND SEVEN HUNDRED TWENTY
AND 00/100 DOLLARS ($12,720.00), evidenced by funds paid by Magnegas Corporation on behalf of Lessee, in connection with
the closing of that certain Stock Purchase Agreement (the “SPA”), dated as of October 10, 2014, as a deposit which,
upon full execution of this lease, shall be applied as follows:

 

	 	 	RECEIVED	 	 	PAYABLE
    PRIOR TO

OCCUPANCY	 
	Rent for the period from October 27, 2014 to November 30, 2014 (rent for one month and 5 days)

	 	$	0.00	 	 	$	6,967.74	 
	Last month’s rent	 	$	0.00	 	 	$	6,000.00	 
	Other (Sales Tax)	 	$	0.00	 	 	$	487.74	 
	Total	 	$	0.00	 	 	$	13,455.48	 

 

As of October 27, 2014 (the
“Effective Date”), Lessee leases from Robert A. Ficocelli, as Trustee of the Robert A. Ficocelli Revocable Trust
Agreement, dated September 17, 2004 (“Lessor”), and Lessor hereby leases to Lessee the premises situated in the
City of Pinellas Park, County of Pinellas, State of Florida, described as 12707 44th
Street North, Pinellas Park, Florida 33762, upon the following TERMS and CONDITIONS:

 

1. TERM: The term hereof
shall be for five (5) years and five (5) days, commencing on October 27, 2014, and expire on October 31, 2019.

2. RENT: The total rent
shall be $6,000.00 per month plus applicable sales tax, payable as follows:  due and payable on the 1st day
of each month. All rents shall be paid the Lessor or his authorized agent, at the following address: 11131 117th
Lane, Seminole, Florida 33778 or at such other places as may be designated by Lessor from time to time. Rent not received by
Lessor on or before the 10th day of each month will incur a $300.00 late payment penalty.

3. USE: The premises are
to be used for office, retail, distribution, and warehouse uses, including without limitation, the filling of industrial gas
cylinders and uses incidental thereto, and for no other purpose, without prior written consent of Lessor, which shall not be
unreasonably withheld, conditioned or delayed.

4. USES PROHIBITED: Lessee
shall not use any portion of the premises for purposes other than those specified herein above, and no other use shall be made
or permitted to be made upon the premises, nor acts done, which will materially increase the existing rate of insurance upon the
property, or cause cancellation of insurance policies covering said property. Lessee shall not conduct or permit any sale by auction
on the premises.

5. ASSIGNMENT AND SUBLETTING:
Lessee shall not assign this lease or sublet any portion of the premises without prior written consent of the Lessor, which consent
shall not be unreasonably withheld, conditioned or delayed. Any such assignment or subletting without consent shall be void. Notwithstanding
anything contained herein to the contrary, Lessee may assign or sublet all or a portion of the premises to a parent, subsidiary
or affiliate of Lessee, without Lessor’s consent.

6. ORDINANCES AND STATUTES:
Lessor hereby warrants and represents that the premises complies with all statutes, ordinances and requirements of all municipal,
state and federal authorities in force as of the Effective Date of this Lease. During the term of this Lease, Lessee shall comply
with all statutes, ordinances and requirements of all municipal, state and federal authorities now in force, or which may hereafter
be in force, pertaining to its use of the premises.

 

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7. MAINTENANCE, REPAIRS, ALTERATIONS:
Except as otherwise set forth in this Lease, Lessee acknowledges that the premises and the building located on the premises (the
“Building”) are in good order and repair, unless otherwise indicated herein and accepts the premises "as is."
Lessor shall repair and maintain in good order and condition, ordinary wear and tear excepted, the mechanical and equipment rooms,
the roof of the Building, the exterior walls of the Building, the exterior windows of the Building, the structural portions of
the Building, the electrical, plumbing, mechanical, fire protection, life safety, parking lot, stormwater drainage systems, and
HVAC systems servicing the Building. However, unless the waiver of subrogation provision in Paragraph 11 of this Lease applies,
Lessee shall pay the cost of any such repairs or maintenance resulting from acts or omissions of Lessee, its employees, agents,
or contractors. Except to the extent Lessor is obligated to repair and maintain the premises as provided above, Lessee shall, at
its sole cost, maintain the premises, including landscaping, in a clean, attractive condition, similar to the condition that it
existed on the Effective Date, reasonable wear and tear excepted. Lessor shall, at its sole cost and expense, timely pay all real
estate taxes and assessments on the property.

No material
improvement or alteration of the premises shall be made without the prior written consent of the Lessor, which consent shall not
be unreasonably withheld, conditioned or delayed. Prior to the commencement of any substantial repair, improvement, or alteration,
Lessee shall give Lessor at least two (2) days written notice in order that Lessor may post appropriate notices to avoid any liability
for liens.

Lessee shall
not commit any waste upon the premises or any nuisance, provided that the permitted uses granted under this Lease shall not be
considered a waste or nuisance. Notwithstanding anything contained herein to the contrary, the parties hereby acknowledge and agree
that the condition of the premises as of the Effective Date is more particularly described in that certain Property Inspection
Report, dated October 21, 2014, by Thomas Inspection Services, Inc., and that certain Wood-Destroying Organisms Inspection Report,
dated October 16, 2014, by SWAT Exterminating Company, attached hereto as composite Exhibit “A” (collectively, the
“Inspection Reports”). Further, Lessor shall be solely responsible for the repair, replacement and maintenance of any
condition existing on the premises as of the Effective Date, including the conditions set forth in the Inspection Reports. Within
thirty (30) days of the Effective Date, Lessor shall repair those portions of the fence that are noted in the Inspection Reports
as requiring repair so that the premises is properly secured.

8. ENTRY AND INSPECTION: Lessee
shall permit Lessor or Lessor's agents to enter upon the premises at reasonable times and upon reasonable notice, for the purpose
of inspecting the same, provided the Lessor is accompanied by a representative of Lessee. Lessee will permit Lessor at any time
within ninety (90) days prior to the expiration of this Lease, to place upon the premises any usual "To let" or "For
lease" signs, and permit persons desiring to lease the same to inspect the premises thereafter.

9. INDEMNIFICATION: Subject
to Paragraph 11 below, each party shall indemnify and hold the other harmless against any claim of liability or loss from personal
injury or property damage resulting from or arising out of the negligence or willful misconduct of the indemnifying Party, its
employees, contractors or agents, except to the extent such claims or damages may be due to or caused by the negligence or willful
misconduct of the other party, or its employees, contractors or agents.

10. POSSESSION: Lessor
shall possession of the premises to Lessee at the commencement hereof.

11. INSURANCE: Lessee,
at its expense, shall maintain general commercial liability insurance including bodily injury and property damage insuring Lessee
and Lessor with minimum coverage as follows: commercial general liability insurance with limits not less than $1,000,000 for
injury to or death of one or more persons in any one occurrence and $50,000 for damage or destruction to property in any one occurrence.
Lessee shall provide Lessor with a Certificate of Insurance showing Lessor as an additional insured. The Certificate shall provide
for a ten (10)-day written notice to Lessor in the event of cancellation or material change of coverage. To the maximum extent
permitted by insurance policies which may be owned by Lessor or Lessee, Lessee and Lessor, for the benefit of each other, waive
any and all rights of subrogation which might otherwise exist.

  

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12. UTILITIES: Lessee agrees that
it shall be responsible for the payment of all utilities, including water, gas, electricity, heat and other services delivered
to the premises.

13. SIGNS: Lessee shall have the
right to construct any projecting sign or awning with the prior written consent of Lessor which consent shall not be unreasonably
withheld, conditioned or delayed. Any change to the existing signage shall require Lessee to obtain all required permits and liability
insurance.

14. ABANDONMENT OF PREMISES: Lessee
shall not vacate or abandon the premises at any time during the term hereof, and if Lessee shall abandon or vacate the premises,
or be dispossessed by process of law, or otherwise, any personal property belonging to Lessee left upon the premises shall be deemed
to be abandoned, at the option of the Lessor.

15. CONDEMNATION: If any part of
the premises shall be taken or condemned for public use, and a part thereof remains which is susceptible of occupation hereunder,
this lease shall, as to the part taken, terminate as of the date the condemner acquires possession, and thereafter Lessee shall
be required to pay such proportion of the rent for the remaining term as the value of the premises remaining bears to the total
value of the premises at the date of condemnation. In the event that the demised premises are condemned in whole, or that such
portion is condemned that the remainder is not susceptible for Lessee’s use hereunder, then Lessee may terminate this lease
upon the date upon which the condemner acquires possession. All sums which may be payable on account of any condemnation shall
belong to the Lessor, and Lessee shall not be entitled to any part thereof; provided however, that Lessee shall be entitled to
retain any amount awarded to him for his trade fixtures, business damages and moving expenses.

16. TRADE FIXTURES: Any and all
improvements made to the premises during the term hereof shall belong to the Lessor, except trade fixtures of the Lessee. Lessee
may, upon termination hereof, remove all its trade fixtures, but shall repair or pay for all repairs necessary for damages to the
premises occasioned by removal, reasonable wear and tear excepted.

17. DESTRUCTION OF PREMISES: In
the event of a partial destruction of the premises during the term hereof, from any cause, Lessor shall repair the same provided
that such repairs can be made within sixty (60) days under existing governmental laws and regulations, but such partial destruction
shall not terminate this lease, except that Lessee shall be entitled to a proportionate reduction of rent while such repairs are
being made, based upon the extent to which the making of such repairs shall interfere with the business of Lessee on the premises.
If such repairs cannot be made within said sixty (60) days, Lessor, at his option, may make the same within a reasonable time,
this lease continuing in effect with the rent proportionately abated as aforesaid, and in the event that Lessor shall not elect
to make such repairs which cannot be made within sixty (60) days, this lease may be terminated at the option of either party.

In the event that the
Building in which the demised premises may be situated is destroyed to an extent of not less than one-third of the replacement
costs thereof, Lessee may elect to terminate this lease. A total destruction of the Building in which the premises may be situated
shall result in an automatic termination of this lease.

In the event of any
dispute between Lessor and Lessee with respect to the provisions hereof, the matter shall be settled by arbitration in such a manner
as the parties may agree upon, or if they cannot agree, in accordance with the rules of the American Arbitration Association.

18. INSOLVENCY: In the event that
a receiver shall be appointed to take over the business of the Lessee, or in the event that the Lessee shall make a general assignment
for the benefit of creditors, or Lessee shall take or suffer any action under any insolvency or bankruptcy act, the same shall
constitute breach of this lease by Lessee.

 

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19. REMEDIES OF Lessor ON DEFAULT:
In the event there is a breach by Lessee with respect to any of the provisions of this Lease or its obligations under it, including
the payment of rent, Lessor shall give Lessee written notice of such breach. After receipt of such written notice, Lessee shall
have fifteen (15) days in which to cure any monetary breach and thirty (30) days in which to cure any non-monetary breach, provided
Lessee shall have such extended period as may be required beyond the thirty (30) days if the nature of the cure is such that it
reasonably requires more than thirty (30) days and Lessee commences the cure within the thirty (30) day period and thereafter continuously
and diligently pursues the cure to completion. Lessor may not maintain any action or effect any remedies for default against Lessee
unless and until Lessee has failed to cure the breach within the time periods provided in this Paragraph. In the event of any breach
of this lease by Lessee beyond any applicable cure period, Lessor may, at its option, enter the leased premises to again have,
repossess and enjoy the same as if the Lease had not been made, and thereupon this lease and everything herein contained on the
part of Lessor to be done and performed shall cease, terminate, and be utterly void without prejudice, however, to the right of
Lessor to recover from Lessee all rent due up to the time of entry and to be due during the term of this Lease. In case of such
default and entry by Lessor, Lessor may relet said premises for the remainder of said term.

The various rights
and remedies given to or reserved by Lessor by this Lease, or allowed by law, shall be cumulative, and no delay or omission to
exercise any of Lessor's rights shall be construed as a waiver of any default or acquiescence therein, nor shall any waiver of
any breach or any other provision thereof be considered a condonement of any continuing or subsequent breach of the same provision.

20. SECURITY: The security deposit
set forth above, if any, shall secure the performance of the Lessee's obligations hereunder. Lessor may, but shall not be obligated
to apply all or portions of said deposit on account of Lessee's obligations hereunder. Any balance remaining upon termination shall
be returned to Lessee. Lessee shall not have the right to apply the Security Deposit in payment of the last month's rent.

21. DEPOSIT REFUNDS: The balance
of all deposits shall be refunded within two weeks from date possession is delivered to Lessor or his authorized agent, together
with a statement showing any changes made against such deposits by Lessor.

22. ATTORNEY'S FEES: In case suit
should be brought for recovery of the premises, or for any sum due hereunder, or because of any act which may arise out of the
possession of the premises, by either party, the prevailing party shall be entitled to all costs incurred in connection with such
action, including a reasonable attorney's fees.

23. WAIVER: No failure of Lessor
to enforce any term hereof shall be deemed to be a waiver.

24. NOTICES: Any notice which either
party may or is required to give, shall be given by mailing the same, postage prepaid, to lessee at the premises, or Lessor at
the address shown below or at such other place as may be designated by the parties from time to time.

25. HOLDING OVER: Any holding over
after the expiration of this lease shall be construed as a month-to-month tenancy at a rental of $6,000.00 per month, otherwise
in accordance with the terms hereof, as applicable.

26. TIME: Time is of the essence
of this lease.

27. HEIRS, ASSIGNS, SUCCESSORS:
This lease is binding upon the inures to the benefit of the heirs, assigns and successors in interest to the parties.

28. LEAD-BASED PAINT WARNING STATEMENT:
Lessee is hereby notified that the premises may present exposure to lead from lead-based paint that may place young children at
risk of developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage, including learning
disabilities, reduced intelligence quotient, behavioral problems, and impaired memory. Lead poisoning also poses a particular risk
to pregnant women. A risk assessment or inspection by Lessee for possible lead-based paint hazards is recommended by Lessor prior
to occupancy.

 

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29. HAZARDOUS MATERIALS: Lessor
shall hold Lessee harmless and indemnify Lessee from and assume all duties, responsibility and liability at Lessor's sole cost
and expense, for all duties, responsibilities, and liability (for payment of penalties, sanctions, forfeitures, losses, costs,
or damages) and for responding to any action, notice, claim, order, summons, citation, directive, litigation, investigation or
proceeding which is in any way related to: a) failure to comply with any environmental or industrial hygiene law, including without
limitation any regulations, guidelines, standards, or policies of any governmental authorities regulating or imposing standards
of liability or standards of conduct with regard to any environmental or industrial hygiene concerns or conditions prior to the
Effective Date; and b) any environmental or industrial hygiene conditions arising out of or in any way related to the condition
of the Building or premises or activities conducted thereon, unless such environmental conditions are caused by Lessee. Lessee
shall comply at all times with all Pinellas County, State of Florida and U.S. Government laws concerning renovation of the leased
premises. This compliance includes, but is not limited to, a thorough written asbestos inspection and asbestos survey report, written
notification, proper removal practices and proper disposal of regulated asbestos containing materials prior to any applicable
renovation of the demised premises. Lessee shall indemnify, protect, defend and hold Lessor harmless from and against any and all
claims arising out of, in connection with, or directly or indirectly arising out of the generation, treatment, release, disposal
or transportation of regulated asbestos containing materials by Lessee, or any successor, assignee or sublessee of Lessee, or their
respective agents, contractors, employees, licensees, or invitees, on, about or from the leased premises, including, but not limited
to, all foreseeable and unforeseeable costs, expenses, and liabilities related to any inspection, survey, testing, repair, cleanup
or removal costs, and any foreseeable or unforeseeable consequential damages.

30. LIMITATION OF LIABILITY. Except
for indemnification pursuant to paragraphs 9 and 29, neither Party shall be liable to the other, or any of their respective agents,
representatives, employees for any lost revenue, lost profits, loss of technology, rights or services, incidental, punitive, indirect,
special or consequential damages, loss of data, or interruption or loss of use of service, even if advised of the possibility of
such damages, whether under theory of contract, tort (including negligence), strict liability or otherwise.

31. ENTIRE AGREEMENT: The foregoing
constitutes the entire agreement between the parties and may be modified only by a writing signed by both parties. The following
Exhibits, if any, have been made a part of this lease before the parties' execution hereof: Exhibit “A” containing
Inspection Reports.

32. SUBORDINATION AND NON-DISTURBANCE.
At Lessor's option, this Lease shall be subordinate to any future master lease, ground lease, mortgage, deed of trust or other
security interest (a “Mortgage”) by Lessor which from time to time may encumber all or part of the premises, Building
or right-of-way; provided, however, as a condition precedent to Lessee being required to subordinate its interest in this Lease
to any future Mortgage, Lessor shall obtain for Lessee's benefit a non disturbance and attornment agreement for Lessee's benefit
in the form reasonably satisfactory to Lessee. In the event that a foreclosure is filed against the Lessor by a mortgagee or lienor
of the property, Lessee shall have the right, in its sole discretion, to terminate this Lease with thirty (30) days prior written
notice.

33. INTEGRATION. It is agreed and
understood that this Lease contains all agreements, promises and understandings between Lessor and Lessee and that no verbal or
oral agreements, promises or understandings shall be binding upon either Lessor or Lessee in any dispute, controversy or proceeding
at law, and any addition, variation or modification to this Lease shall be void and ineffective unless made in writing signed by
the parties. In the event any provision of the Lease is found to be invalid or unenforceable, such finding shall not affect the
validity and enforceability of the remaining provisions of this Lease. The failure of either party to insist upon strict performance
of any of the terms or conditions of this Lease or to exercise any of its rights under the Lease shall not waive such rights and
such party shall have the right to enforce such rights at any time and take such action as may be lawful and authorized under this
Lease, in law or in equity.

 

    	5

    	 

    

 

34.
TITLE. Lessor represents and warrants to Lessee as of the execution date of this Lease, and covenants during the term that
Lessor is seized of good and sufficient title and interest to the Property and has full authority to enter into and execute this
Lease. Lessor further covenants during the Term that there are no liens, judgments or impediments of title on the Property, or
affecting Lessor's title to the same and that there are no covenants, easements or restrictions which prevent or adversely affect
the use or occupancy of the Premises by Lessee as set forth above. The Lessee’s equipment is personal property of the Lessee
and the Lessee at all times owns and controls them. Lessor and Lessee agree, and Lessor shall so inform any purchaser or mortgagee
of the Property of this Lease and that all equipment owned by Lessee shall be and remain the property of Lessee under all circumstances,
under Lessee’s exclusive control, free and clear of any liens or encumbrances other than those permitted by Lessee, and shall
be deemed to be and remain personal property and not part of the real estate on which the same are located. Lessor
further covenants that Lessee, on paying the rent and performing the covenants herein, shall peaceably and quietly have, hold and
enjoy the premises

35. SURVIVAL. The provisions of
the Lease relating to indemnification from one party to the other party shall survive any termination or expiration of this Lease.
Additionally, any provisions of this Lease which require performance subsequent to the termination or expiration of this Lease
shall also survive such termination or expiration.

36. LESSOR’S REMOVAL OF PERSONAL
PROPERTY. Within thirty (30) days of the Effective Date, Lessor shall: (i) remove all personal property owned by Lessor and
stored at the premises that was not sold the Lessee in connection with the SPA; (ii) repair any damage to the premises caused by
Lessor’s storage and removal of said personal property; and (iii) leave the premises in a clean and orderly condition.

37. RADON GAS DISCLOSURE. RADON IS A
NATURALLY OCCURRING RADIOACTIVE GAS THAT, WHEN IT HAS ACCUMULATED IN A BUILDING IN SUFFICIENT QUANTITIES, MAY PRESENT HEALTH RISKS
TO PERSONS WHO ARE EXPOSED TO IT OVER TIME. LEVELS OF RADON THAT EXCEED FEDERAL AND STATE GUIDELINES HAVE BEEN FOUND IN BUILDINGS
IN FLORIDA. ADDITIONAL INFORMATION REGARDING RADON AND RADON TESTING MAY BE OBTAINED FROM YOUR COUNTY HEALTH DEPARTMENT.

 

The undersigned Lessee hereby acknowledges
receipt of a copy hereof.

 

    	6

    	 

    

 

IN WITNESS WHEREOF, the parties hereto have set their hands and affixed their respective seals the day
and year first above written. 

 

	Witnesses:	 	“Lessor”
	 	 	 
	 	 	 
	Name:	 	 	By: 	Robert A. Ficocelli, as Trustee of the Robert A. Ficocelli Revocable Trust Agreement, dated September
17, 2004
	 	 	 	 
	 	 	 	 
	 	 	Date:	 

 

	 	 	 	 
	Name:	 	 	 
	 	 	 
	Witnesses:	 	“Lessee”
	 	 	 
	 	 	Equipment Sales and Service, Inc., 
	Name:	 	 	a Florida corporation

 

	 	 	By:	 
	Name:	 	 	Name:	 
	 	 	Title:	 
	 	 	Date:	 

 

    	7

    	 

    

 

Exhibit “A”

Inspection Reports

 

See attached.

 

    	8

    	 

    

 

NONSOLICITATION AND NONCOMPETITION AGREEMENT

 

THIS NONSOLICITATION
AND NONCOMPETITION AGREEMENT (this “Agreement”) is made and entered into effective as of ____________, by
and among MagneGas Corporation, a Florida corporation (“MagneGas”) and Equipment Sales and Service, Inc., a
Florida corporation (the “Company”) on the one part, and Stephen R. Homer (“Homer”).

 

RECITALS 

 

WHEREAS, MagneGas
is the purchaser under that certain Stock Purchase Agreement (the “SPA”) between MagneGas and Homer, the Robert
A. Ficocelli Revocable Trust, and Robert A. Ficocelli (jointly, Homer, the Trust and Mr. Ficocelli as “Seller Parties”
thereunder), dated as of October 10, 2014 for the purchase of all the stock of the Company from the Seller Parties thereunder;

 

WHEREAS, an
integral part of the incentive for MagneGas to pay the purchase price under the SPA (the “Purchase Price”) is
Homer’s agreement to enter into a non-competition and non-solicitation agreement with the Company and MagneGas under the
terms set forth herein;

 

NOW, THEREFORE,
in consideration of MagneGas’s payment of the Purchase Price, part of which is directly related to the benefit to be
received by MagneGas hereunder, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
the parties hereto, intending to be legally bound hereby, agree as follows:

 

Section 1. Nonsolicitation.
For a period of five (5) years after the closing of the transactions contemplated by the SPA (the “Restriction Period”),
Homer shall not, directly or indirectly solicit, induce, or influence any customer, supplier, lender, lessor, or any other person
or entity which has a business relationship with the Company (or any affiliate of the Company) to discontinue, reduce the extent
of, or otherwise adversely affect such business relationship. Homer shall not, at any time during the Restriction
Period, directly or indirectly recruit, solicit, hire, employ or otherwise induce or influence any employee, agent, independent
contractor, or consultant of the Company (or any affiliate of the Company) to discontinue his/her/its employment, agency, contract,
or other relationship with the Company (or such affiliate).

 

Section 2. Confidentiality.
Homer acknowledges that he is a party to that certain Confidential Non-Disclosure Agreement dated as of August 13, 2014 with
MagneGas (the “NDA”), and that the SPA also contains certain confidentiality provisions as to the transactions contemplated
thereby, and that nothing stated herein is intended to alter, modify or amend the terms of such confidentiality provisions or the
terms of the NDA. Homer’s obligations pursuant to such NDA and confidentiality provisions shall continue in full force and
effect and shall apply to all Company property as identified in such NDA and to all Confidential Information, as defined below.
“Confidential Information” shall mean information relating to the Company and the Company’s affiliates’
method of operations, techniques, business programs, business strategies, computer systems, computer programming, developments,
improvements, business plans, research, discoveries, accounting, recording, marketing, advertising and promotional materials, suppliers,
pricing, costs, customers, and employees, as well as other information which may be deemed by any custom, usage, or authority to
be intellectual property, trade secrets, or know-how, AND as to the terms of the SPA and its effect on such Confidential Information.
Homer recognizes and acknowledges that each and every item of Confidential Information is a valuable, special, and unique asset
of the Company and the Company’s affiliates. Accordingly, Homer will not disclose, disseminate, publish, or use any portion
of the Confidential Information for any purpose whatsoever, unless such disclosure, dissemination, publication, or use is expressly
permitted by Company in writing or is compelled by a court order or subpoena.

 

    	 

    	 

    

 

 

Section 3. Noncompetition
Obligations. During the Restriction Period Homer shall not, individually or jointly with others, directly or indirectly,
whether for his own account or for that of any other person or entity, own or hold any ownership interest in any person or entity
engaged in a business which directly or indirectly competes with or has a business relationship with the Company or MagneGas, and
Homer shall not act as an officer, director, employee, partner, independent contractor, consultant, principal, agent, proprietor,
or in any other capacity for, nor lend any assistance (financial or otherwise) or cooperation to, any such person, or entity; provided,
however, that it shall not be a violation of this Section 3 for Homer to own a one percent (1%) or smaller interest in any
corporation required to file periodic reports with the Securities and Exchange Commission.

 

Specifically, by way
of illustration and not of limitation, Homer shall not invest in or solicit for employment at the following businesses: welding
gas distribution companies, welding repair companies, industrial gas distribution companies, gas manufacturing companies.

 

Section 4. Reasonableness
of Restrictions; Reformation; Enforcement. Homer recognizes and acknowledges that the geographical and time limitations
contained in Sections 1 and 3 of this Agreement are reasonable and properly required for the adequate protection of MagneGas, the
Company and their affiliates’ legitimate business interests. It is agreed by the parties hereto that if any portion of the
restrictions contained in Sections 1 or 3 are held to be unreasonable, arbitrary, or against public policy, then the restrictions
shall be considered divisible, both as to the time and to geographical area, with each month of the specified period being deemed
a separate period of time and each county of the restricted territory being deemed a separate geographical area, so that the lesser
period of time or geographical area shall remain effective so long as the same is not unreasonable, arbitrary, or against public
policy. The parties hereto agree that in the event any court of competent jurisdiction determines the specified period or the specified
geographical area of the restricted territory to be unreasonable, arbitrary, or against public policy, a lesser time period or
geographical area which is determined to be reasonable, nonarbitrary, and not against public policy may be enforced against Homer.
If Homer violates any of the covenants contained herein and if any action is instituted by MagneGas or the Company to prevent or
enjoin such violation, then the period of time during which Homer’s business activities shall be restricted, as provided
in this Agreement, shall be lengthened by a period of time equal to the period between the date of Homer’s breach of the
terms or covenants contained in this Agreement and the date on which the decree of the court disposing of the issues upon the merits
shall become final and not subject to further appeal. Homer expressly agrees and acknowledges that the transactions contemplated
by the SPA include the sale of the trade secrets previously held by Homer through his ownership of the Company and that the restrictive
covenants contained in this Agreement, including their length and geographic scope are necessary to protect MagneGas and the Company
and to give them the benefit of the bargain contemplated by the SPA.

 

    	2

    	 

    

 

 

Section 5. No
Remedy at Law. Homer agrees that the remedy at law for any breach by Homer of the covenants contained in Sections 1, 2,
and 3 hereof will be inadequate and would be difficult to ascertain and will cause irreparable injury to MagneGas and/or the Company,
for which neither MagneGas nor the Company will have an adequate remedy at law. Therefore, in the event of the breach or threatened
breach of any such covenants, MagneGas and the Company, in addition to any other remedy, shall have the right to enjoin Homer from
any threatened or actual activities in violation thereof, and Homer hereby consents and agrees that temporary and permanent injunctive
relief may be granted in any proceedings which might be brought to enforce any such covenants without the necessity of proof of
actual damages. In the event that MagneGas or the Company does apply for such an injunction, Homer shall not raise as a defense
thereto that MagneGas or the Company has an adequate remedy at law.

 

Section 6. Miscellaneous
. 

 

a. Amendments.
No change, modification, or termination of any of the terms, provisions, or conditions of this Agreement shall be effective
unless made in writing and signed or initialed by all parties hereto. There shall be no oral modifications of this Agreement.

 

b. Governing Law;
Litigation. This Agreement shall be governed by and construed in accordance with the laws of the State of Florida, without
reference to principles of choice of law thereunder. Any dispute directly or indirectly arising under or related to this Agreement
shall be resolved exclusively in the state or federal courts located in Pinellas County, Florida, and the parties hereto hereby
consent to the jurisdiction of such courts for this purpose.

 

c. Severability.
Each section and paragraph of this Agreement constitutes a separate and distinct provision. In the event that such a provision
is determined to be invalid or unenforceable, the provision shall be deemed limited in scope and effect to the extent, and only
to the extent, necessary to render the same valid and enforceable. If such a limiting construction is impossible, such invalid
or unenforceable provision shall be deemed severed from this Agreement, but every other provision of this Agreement shall remain
in full force and effect.

 

    	3

    	 

    

 

 

d. Headings and
Captions. The headings, titles, captions, and sections contained in this Agreement are provided for convenience of reference
only and shall not be considered a part hereof for purposes of interpreting or applying this Agreement; such titles or captions
do not define, limit, extend, explain, or describe the scope or extent of this Agreement or any of its terms, provisions, representations,
warranties, conditions, etc., in any manner or way whatsoever.

 

e. Gender and Number.
All pronouns and variations thereof shall be deemed to refer to the masculine, feminine, or neuter and to the singular
or plural as the identity of the person or entity or persons or entities may require.

 

g. Assignment;
Binding Effect on Successors and Assigns; Waiver. This Agreement may not be assigned by either party hereto without the
written consent of the other party, except that this Agreement may be assigned by MagneGas or the Company to any affiliate of either
of them. This Agreement shall be binding on and shall inure to the benefit of the parties hereto and their respective successors,
heirs, and permitted assigns. The successors and assigns of MagneGas and/or the Company may enforce any and all provisions of this
Agreement. The failure of a party to enforce any term, provision, or condition of this Agreement at any time or times shall not
be deemed a waiver of that term, provision, or condition for the future, nor shall any specific waiver of a term, provision, or
condition at one time be deemed a waiver of such term, provision, or condition for any future time or times.

 

h. Entire Agreement;
Counterparts. This Agreement and the SPA constitute the entire agreement among the parties hereto with respect to the subject
matter hereof, and it supersedes all prior memoranda, correspondence, conversations, and negotiations. This Agreement may be executed
in several counterparts that together shall constitute but one and the same Agreement.

 

i. No Conflicting
Obligations. Homer hereby represents and warrants to MagneGas and the Company that Homer is not a party to, nor
is Homer bound by, any agreement, court order, or other obligation that would restrict or prohibit Homer from performing any services
for MagneGas or the Company or any affiliate thereof.

 

[SIGNATURES ON THE FOLLOWING
PAGE]

 

    	4

    	 

    

  

IN WITNESS WHEREOF, the parties hereto have entered into
this Agreement effective as of the date first set forth above.

 

	 	 	 
	 	 	 
	 	Stephen R. Homer	 
	 	 	 
	 	“Homer”	 
	 	 	 
	 	MagneGas Corporation	 
	 	 	 	 
	 	By:	 	 
	 	 	    Ermanno Santilli	 
	 	Its:	    President	 
	 	 	 	 
	 	“MagneGas”	 
	 	 	 	 
	 	Equipment Sales and Service, Inc.	 
	 	 	 	 
	 	By:	 	 
	 	 	 	 
	 	 	    (printed name of authorized officer)	 
	 	Its:	 	 
	 	 	 	 

 

 

    	5

    	 

    

 

NONSOLICITATION AND NONCOMPETITION AGREEMENT

 

THIS NONSOLICITATION
AND NONCOMPETITION AGREEMENT (this “Agreement”) is made and entered into effective as of ____________, by
and among MagneGas Corporation, a Florida corporation (“MagneGas”) and Equipment Sales and Service, Inc., a
Florida corporation (the “Company”) on the one part, and Robert Ficocelli (“Ficocelli”).

 

RECITALS 

 

WHEREAS, MagneGas
is the purchaser under that certain Stock Purchase Agreement (the “SPA”) between MagneGas and Ficocelli, the
Robert A. Ficocelli Revocable Trust, and Stephen R. Homer (jointly, Ficocelli, the Trust and Mr. Homer as “Seller Parties”
thereunder), dated as of October 10, 2014 for the purchase of all the stock of the Company from the Seller Parties thereunder;

 

WHEREAS, an
integral part of the incentive for MagneGas to pay the purchase price under the SPA (the “Purchase Price”) is
Ficocelli’s agreement to enter into a non-competition and non-solicitation agreement with the Company and MagneGas under
the terms set forth herein;

 

NOW, THEREFORE,
in consideration of MagneGas’s payment of the Purchase Price, part of which is directly related to the benefit to be
received by MagneGas hereunder, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
the parties hereto, intending to be legally bound hereby, agree as follows:

 

Section 1. Nonsolicitation.
For a period of five (5) years after the closing of the transactions contemplated by the SPA (the “Restriction Period”),
Ficocelli shall not, directly or indirectly solicit, induce, or influence any customer, supplier, lender, lessor, or any other
person or entity which has a business relationship with the Company (or any affiliate of the Company) to discontinue, reduce the
extent of, or otherwise adversely affect such business relationship. Ficocelli shall not, at any time during the
Restriction Period, directly or indirectly recruit, solicit, hire, employ or otherwise induce or influence any employee, agent,
independent contractor, or consultant of the Company (or any affiliate of the Company) to discontinue his/her/its employment, agency,
contract, or other relationship with the Company (or such affiliate).

 

    	 

    	 

    

  

Section 2. Confidentiality.
Ficocelli acknowledges that he is a party to that certain Confidential Non-Disclosure Agreement dated as of August 13, 2014
with MagneGas (the “NDA”), and that the SPA also contains certain confidentiality provisions as to the transactions
contemplated thereby, and that nothing stated herein is intended to alter, modify or amend the terms of such confidentiality provisions
or the terms of the NDA. Ficocelli’s obligations pursuant to such NDA and confidentiality provisions shall continue in full
force and effect and shall apply to all Company property as identified in such NDA and to all Confidential Information, as defined
below. “Confidential Information” shall mean information relating to the Company and the Company’s affiliates’
method of operations, techniques, business programs, business strategies, computer systems, computer programming, developments,
improvements, business plans, research, discoveries, accounting, recording, marketing, advertising and promotional materials, suppliers,
pricing, costs, customers, and employees, as well as other information which may be deemed by any custom, usage, or authority to
be intellectual property, trade secrets, or know-how, AND as to the terms of the SPA and its effect on such Confidential Information.
Ficocelli recognizes and acknowledges that each and every item of Confidential Information is a valuable, special, and unique asset
of the Company and the Company’s affiliates. Accordingly, Ficocelli will not disclose, disseminate, publish, or use any portion
of the Confidential Information for any purpose whatsoever, unless such disclosure, dissemination, publication, or use is expressly
permitted by Company in writing or is compelled by a court order or subpoena.

 

Section 3. Noncompetition
Obligations. During the Restriction Period Ficocelli shall not, individually or jointly with others, directly or
indirectly, whether for his own account or for that of any other person or entity, own or hold any ownership interest in any person
or entity engaged in a business which directly or indirectly competes with or has a business relationship with the Company or MagneGas,
and Ficocelli shall not act as an officer, director, employee, partner, independent contractor, consultant, principal, agent, proprietor,
or in any other capacity for, nor lend any assistance (financial or otherwise) or cooperation to, any such person, or entity; provided,
however, that it shall not be a violation of this Section 3 for Ficocelli to own a one percent (1%) or smaller interest
in any corporation required to file periodic reports with the Securities and Exchange Commission.

 

Specifically, by way
of illustration and not of limitation, Ficocelli shall not invest in or solicit for employment at the following businesses: welding
gas distribution companies, welding repair companies, industrial gas distribution companies, gas manufacturing companies.

 

Section 4. Reasonableness
of Restrictions; Reformation; Enforcement. Ficocelli recognizes and acknowledges that the geographical and time limitations
contained in Sections 1 and 3 of this Agreement are reasonable and properly required for the adequate protection of MagneGas, the
Company and their affiliates’ legitimate business interests. It is agreed by the parties hereto that if any portion of the
restrictions contained in Sections 1 or 3 are held to be unreasonable, arbitrary, or against public policy, then the restrictions
shall be considered divisible, both as to the time and to geographical area, with each month of the specified period being deemed
a separate period of time and each county of the restricted territory being deemed a separate geographical area, so that the lesser
period of time or geographical area shall remain effective so long as the same is not unreasonable, arbitrary, or against public
policy. The parties hereto agree that in the event any court of competent jurisdiction determines the specified period or the specified
geographical area of the restricted territory to be unreasonable, arbitrary, or against public policy, a lesser time period or
geographical area which is determined to be reasonable, nonarbitrary, and not against public policy may be enforced against Ficocelli.
If Ficocelli violates any of the covenants contained herein and if any action is instituted by MagneGas or the Company to prevent
or enjoin such violation, then the period of time during which Ficocelli’s business activities shall be restricted, as provided
in this Agreement, shall be lengthened by a period of time equal to the period between the date of Ficocelli’s breach of
the terms or covenants contained in this Agreement and the date on which the decree of the court disposing of the issues upon the
merits shall become final and not subject to further appeal. Ficocelli expressly agrees and acknowledges that the transactions
contemplated by the SPA include the sale of the trade secrets previously held by Ficocelli through his ownership of the Company
and that the restrictive covenants contained in this Agreement, including their length and geographic scope are necessary to protect
MagneGas and the Company and to give them the benefit of the bargain contemplated by the SPA.

 

    	2

    	 

    

  

 

Section 5. No
Remedy at Law. Ficocelli agrees that the remedy at law for any breach by Ficocelli of the covenants contained in Sections
1, 2, and 3 hereof will be inadequate and would be difficult to ascertain and will cause irreparable injury to MagneGas and/or
the Company, for which neither MagneGas nor the Company will have an adequate remedy at law. Therefore, in the event of the breach
or threatened breach of any such covenants, MagneGas and the Company, in addition to any other remedy, shall have the right to
enjoin Ficocelli from any threatened or actual activities in violation thereof, and Ficocelli hereby consents and agrees that temporary
and permanent injunctive relief may be granted in any proceedings which might be brought to enforce any such covenants without
the necessity of proof of actual damages. In the event that MagneGas or the Company does apply for such an injunction, Ficocelli
shall not raise as a defense thereto that MagneGas or the Company has an adequate remedy at law.

 

Section 6. Miscellaneous
. 

 

a. Amendments.
No change, modification, or termination of any of the terms, provisions, or conditions of this Agreement shall be effective
unless made in writing and signed or initialed by all parties hereto. There shall be no oral modifications of this Agreement.

 

b. Governing Law;
Litigation. This Agreement shall be governed by and construed in accordance with the laws of the State of Florida, without
reference to principles of choice of law thereunder. Any dispute directly or indirectly arising under or related to this Agreement
shall be resolved exclusively in the state or federal courts located in Pinellas County, Florida, and the parties hereto hereby
consent to the jurisdiction of such courts for this purpose.

 

c. Severability.
Each section and paragraph of this Agreement constitutes a separate and distinct provision. In the event that such a provision
is determined to be invalid or unenforceable, the provision shall be deemed limited in scope and effect to the extent, and only
to the extent, necessary to render the same valid and enforceable. If such a limiting construction is impossible, such invalid
or unenforceable provision shall be deemed severed from this Agreement, but every other provision of this Agreement shall remain
in full force and effect.

 

    	3

    	 

    

  

d. Headings and
Captions. The headings, titles, captions, and sections contained in this Agreement are provided for convenience of reference
only and shall not be considered a part hereof for purposes of interpreting or applying this Agreement; such titles or captions
do not define, limit, extend, explain, or describe the scope or extent of this Agreement or any of its terms, provisions, representations,
warranties, conditions, etc., in any manner or way whatsoever.

 

e. Gender and Number.
All pronouns and variations thereof shall be deemed to refer to the masculine, feminine, or neuter and to the singular
or plural as the identity of the person or entity or persons or entities may require.

 

g. Assignment;
Binding Effect on Successors and Assigns; Waiver. This Agreement may not be assigned by either party hereto without the
written consent of the other party, except that this Agreement may be assigned by MagneGas or the Company to any affiliate of either
of them. This Agreement shall be binding on and shall inure to the benefit of the parties hereto and their respective successors,
heirs, and permitted assigns. The successors and assigns of MagneGas and/or the Company may enforce any and all provisions of this
Agreement. The failure of a party to enforce any term, provision, or condition of this Agreement at any time or times shall not
be deemed a waiver of that term, provision, or condition for the future, nor shall any specific waiver of a term, provision, or
condition at one time be deemed a waiver of such term, provision, or condition for any future time or times.

 

h. Entire Agreement;
Counterparts. This Agreement and the SPA constitute the entire agreement among the parties hereto with respect to the subject
matter hereof, and it supersedes all prior memoranda, correspondence, conversations, and negotiations. This Agreement may be executed
in several counterparts that together shall constitute but one and the same Agreement.

 

i. No Conflicting
Obligations. Ficocelli hereby represents and warrants to MagneGas and the Company that Ficocelli is not a party
to, nor is Ficocelli bound by, any agreement, court order, or other obligation that would restrict or prohibit Ficocelli from performing
any services for MagneGas or the Company or any affiliate thereof.

 

[SIGNATURES ON THE FOLLOWING
PAGE]

 

    	4

    	 

    

  

 

IN WITNESS WHEREOF,
the parties hereto have entered into this Agreement effective as of the date first set forth above.

 

	 	 
	 	Robert Ficocelli
	 	 
	 	“Ficocelli”
	 	 
	 	MagneGas Corporation

 

	 	By: 	 
	 	 	Ermanno Santilli
	 	Its:  	President
	 	 	 
	 	“MagneGas” 
	 	 	 
	 	Equipment Sales and Service, Inc.

 

	 	By:	 
	 	 	 
	 	 	(printed name of authorized officer)
	 	Its:	 

 

    	5

    	 

    

 

[FORM
OF LEGAL OPINION]

 

MagneGas Corporation

150 Rainville Road

Tarpon Springs, FL 34689

Attention: Ermanno Santilli, President

 

		Re:	Stock Purchase Agreement dated as of October 10, 2014 (“Agreement’) by and among MagneGas
Corporation (“Purchaser”), Robert A. Ficocelli, individually and as trustee of the Robert A. Ficocelli
Revocable Trust, and Stephen R. Homer (jointly, the “Seller Parties”).

 

Dear Mr. Santilli:

 

I have acted as counsel to the Seller Parties
and to Equipment Sales and Service, Inc. (the “Corporation”) in connection with the transactions referred to in the
Agreement (the “Transactions”). This opinion is rendered to you pursuant to Section 2.2(b)(iv) of the Agreement. Capitalized
terms used in this letter and not defined herein shall have the meanings given to those terms in the Agreement.

 

I have examined the records of the Corporation,
and such other agreements, documents, certificates, records or other instruments as I have deemed necessary or advisable for purposes
of rendering the opinions expressed in this letter.

 

As to various questions of fact, I have
relied upon the statements of officers of the Corporation, upon records available for public inspection at the office of the Florida
Office of the Secretary of State (“SOS”) and upon certificates and other documents from and communications with the
Florida SOS and other public officials.

 

I have investigated such questions of law
for the purpose of rendering this opinion as I have deemed necessary. I am opining herein only as to matters of Florida law and
have assumed that the internal laws of the State of Florida govern the Transaction Documents (as herein defined).

 

In reaching the opinions set forth below,
I have assumed the following matters to be true:

 

(a)          Purchaser
has duly and validly executed and delivered the Agreement and the related agreements and instruments (collectively, the “Transaction
Documents”) to which Purchaser is a party, and Purchaser’s obligations set forth therein are its legal, valid and binding
obligations, enforceable in accordance with their respective terms;

 

(b)          Each
person executing any such Transaction Document on behalf of Purchaser is duly authorized to do so;

 

(c)          The
Purchaser is duly organized, validly existing and in good standing under the laws its state of incorporation; and

 

(d)          All
documents submitted to me as originals are authentic, all documents submitted to me as certified or photostatic copies conform
to the original documents, all signatures on all documents submitted to me for examination are genuine, and all public records
reviewed are accurate and complete.

 

    	 

    	 

    

 

Based upon and subject to the foregoing,
I am of the opinion that:

 

1.          Equipment
Sales and Service, Inc. is a corporation duly organized, validly existing and in good standing under the laws of the State of Florida.
The Articles of Incorporation of Equipment Sales and Service, Inc. do not violate any provision of the Florida Business Corporation
Act, as amended.

 

2.          The
Robert A. Ficocelli Revocable Trust (the “Trust”) is a trust properly constituted under the laws of Florida and Robert
A. Ficocelli is its duly appointed trustee (the “Trustee”). The Trustee has all requisite power and authority to execute
and deliver, on behalf of the Trust, the Transaction Documents to which the Trust is a party and to perform the obligations of
the Trust under the Transaction Documents and to consummate the transactions contemplated thereby.

 

3.          Richard
Homer is a natural person with legal capacity to execute and deliver the Transaction Documents to which he is a party and to perform
his obligations under the Transaction Documents and to consummate the transactions contemplated thereby.

 

4.          Each
of the Transaction Documents to which any of the Seller Parties is a party has been duly executed and delivered by such Selling
Party and constitutes the valid and binding obligation of such Selling Party, enforceable against such Selling Party in accordance
with its terms.

 

5.          The
instruments of conveyance are in form and substance sufficient to transfer and assign to Purchaser each Selling Party’s right,
title and interest in and to his or its respective shares of the Corporation’s common stock, purchased by the Purchaser from
the Seller Parties pursuant to the terms and conditions of the Agreement (the “Purchased Stock”), and to the best of
my knowledge, upon execution and delivery thereof, against payment of the purchase price therefor, the Seller Parties’ right,
title and interest in and to the Purchased Stock will vest in Purchaser.

 

6.          The
execution and delivery of the Transaction Documents by the Seller Parties and their respective performance of the Transaction Documents
to which each Selling Party is a party, and the consummation of the transactions contemplated thereby, do not:

 

a.           violate,
conflict with or result in the breach of any of the terms of, or result in a material modification of (i) the Trust’s governing
documents, (ii) the Corporation’s Articles of Incorporation or Bylaws, (iii) to the best of my knowledge, any statute, law,
rule or regulation, or any presently existing order, judgment or decree to which any of the Seller Parties, the Corporation, or
the Corporation’s properties or assets are bound or subject;

 

b.           to
the best of my knowledge, violate, conflict with or result in the breach of any of the terms of, or result in a material modification
of, or constitute (or with notice or lapse of time, or both, constitute) a default under any contract or other agreement to which
any Selling Party or the Corporation is a party, or by which it or any of their respective assets or properties may be bound or
subject, or otherwise give any other contracting party the right to terminate any contract or agreement with a Selling Party or
the Corporation; or

 

    	2

    	 

    

 

 

c.           to
the best of my knowledge, violate or cause any revocation of or limitation on any permit (i) that is necessary to the lawful conduct
of the Business of the Corporation or (ii) the violation, revocation or limitation of which could reasonably be expected to have
a material adverse effect on the Corporation or its assets.

 

7.          To
the best of my knowledge, there is no action, suit, proceeding, arbitration or governmental investigation at law or in equity,
or before or by any federal, state, municipal or other government department, commission, board, bureau, agency or instrumentality,
domestic or foreign, pending or threatened against or affecting the Corporation, any Selling Party or any property of the Corporation
or of any Selling Party that has had, or could reasonably be expected to result in, a material adverse effect on the Corporation
or any of its assets.

 

8.          To
the best of my knowledge, neither the Corporation nor any Selling Party is (i) in violation of any applicable law that has had,
or could reasonably be expected to result in, a material adverse effect on the Corporation or such Selling Party, or (ii) subject
to or in default with respect to any final judgment, writ, injunction, decree, rule or regulation of any court or any commission,
board, bureau, agency or instrumentality, domestic or foreign, that has had, or could reasonably be expected to result in, a material
adverse effect on any Selling Party,Corporation or any of its assets.

 

9.          The
capitalization of the Corporation is as set forth on Attachment A to this opinion. All of the outstanding shares of the Corporation’s
capital stock have been duly authorized, are validly issued, and are fully paid and non-assessable. The Corporation does not have
any other authorized or outstanding series or classes of capital stock, or ot the best of my knowledge, any outstanding options,
warrants, preemptive rights or other right to acquire any shares of capital stock of the Corporation.

 

10.         The
Purchased Stock, when sold and delivered in accordance with the terms of the Agreement and for the consideration expressed therein,
shall be duly and validly issued and outstanding.

 

11.         To
the best of my knowledge, all consents, approvals, orders, or authorizations of, or registrations, qualifications, designations,
declarations or filing with any governmental authority of the State of Florida on the part of the Corporation required in connection
with the consummation of the transactions contemplated by the Agreement have been obtained and are effective at this date.

 

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ATTACHMENT A

 

Capitalization

 

    	4

    	 

    

 

EXHIBITS AND SCHEDULES

  

	Exhibit	Description
	 	 
	Exhibit 2.2(b)(ii)	Certification of Trust of Robert Ficocelli, as trustee of the Trust
	 	 
	Exhibit 2.2(b)(v)	Form of Opinion
	 	 
	Exhibit 3.1	Lease Agreement
	 	 
	Exhibit 3.2	Non-Competition and Non-Solicitation Agreement
	 	 
	Exhibit 9.2	Escrow Agreement
	 	 
	Schedule	 
	 	 
	Schedule 1.2	Additional Equipment
	 	 
	Schedule 3.5	Employees to enter into Employment Agreements
	 	 
	Schedule 4.7	Liabilities
	 	 
	Schedule 4.9	Listing of machinery, equipment, vehicles, and other items of tangible personal property owned or leased by the Corporation in excess of U.S. $5,000.00
	 	 
	Schedule 4.11  	Material Contracts
	 	 
	Schedule 4.12	Litigation
	 	 
	Schedule 4.13	Environmental exceptions
	 	 
	Schedule 4.14	Employee Benefits
	 	 
	Schedule 4.15	Intellectual Property
	 	 
	Schedule 4.16	Inventory locations
	 	 
	Schedule 4.18	Employee Information

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