Document:

SECURITIES
PURCHASE AGREEMENT

 

AGREEMENT,
dated as of August __, 2012, between 3DICON Corporation (the “ Company”) and ______________(“Purchaser”).

 

RECITALS:

 

WHEREAS,
the Company desires to sell and issue to Purchaser, and Purchaser desires to purchase from the Company, up to $_______aggregate
face amount of Company’s Convertible Bridge Notes due ninety (90) days from the respective date of issuance (the “
Convertible Bridge Notes”), with terms and conditions as set forth in the form of Convertible Bridge Note attached hereto
as Exhibit A;

 

WHEREAS, the Convertible Bridge Notes
may be convertible into shares of the Company’s common stock, $0.0002 par value per share (the “ Common Stock”),
exchanged for newly issued securities contemplated in a propose subsequent transaction, or redeemed in cash.

 

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

 

ARTICLE 1.    DEFINITIONS

 

		1	Definitions . The following terms, as used herein, have the following meanings:

 

“Additional Shares of Common Stock”
has the meaning set forth in Section 11.6.

 

“Affiliate” means, with respect
to any Person (the “ Subject Person”), (i) any other Person (a “ Controlling Person”) that directly,
or indirectly through one or more intermediaries, Controls the Subject Person or (ii) any other Person (other than the Subject
Person or a Consolidated Subsidiary of the Subject Person) which is Controlled by or is under common Control with a Controlling
Person.

 

“Agreement” means this Securities
Purchase Agreement, as amended, supplemented or otherwise modified from time to time in accordance with its terms.

 

“Asset Sale” has the meaning
set forth in Section 8.4.

 

“Balance Sheet Date” has the
meaning set forth in Section 4.7.

 

“Benefit Arrangement” means
at any time an employee benefit plan within the meaning of Section 3(3) of ERISA which is not a Plan or a Multiemployer Plan
and which is maintained or otherwise contributed to by the Company.

 

 “Benefit Plans” has the meaning
set forth in Section 4.9(b).

 

    	 

    	 

    

  

“Business Day” means any day
except a Saturday, Sunday or other day on which commercial banks in the City of New York are authorized or required by law to close.

 

“Capital Reorganization” has
the meaning set forth in Section 11.5.

 

“Change in Control” means (i) after
the date of this Agreement, any person or group of persons (within the meaning of Sections 13 and 14 of the Exchange Act and the
rules and regulations of the Commission relating to such sections) other than Purchaser shall have acquired beneficial ownership
(within the meaning of Rules 13d-3 and 13d-5 promulgated by the Commission pursuant to the Exchange Act) of 33% or more of the
outstanding shares of Common Stock of the Company without the prior written consent of Purchaser; (ii) any sale or other disposition
(other than by reason of death or disability) to any Person of more than 75,000 shares of Common Stock of the Company by any executive
officers and/or employee directors of the Company without the prior written consent of Purchaser; (iii) individuals constituting
the Board of Directors of the Company on the date hereof (together with any new Directors whose election by such Board of Directors
or whose nomination for election by the stockholders of the Company was approved by a vote of at least 50.1% of the Directors still
in office who are either Directors as of the date hereof or whose election or nomination for election was previously so approved),
cease for any reason to constitute at least two-thirds of the Board of Directors of the Company then in office.

 

“VWAP” shall mean for any security
as of any date, the Volume Weighted Average Price as reported by Bloomberg, L.P. (“ Bloomberg”) on the principal securities
exchange or trading market where such security is listed or traded or, if the foregoing does not apply, the Volume Weighted Average
Price of such security in the over-the-counter market on the electronic bulletin board for such security as reported by Bloomberg,
or, if no Volume Weighted Average Price is reported for such security by Bloomberg, then the average of the bid prices of any market
makers for such securities as reported in the “Pink Sheets” by the National Quotation Bureau, Inc. If the lowest closing
bid price cannot be calculated for such security on such date on any of the foregoing bases, the lowest closing bid price of such
security on such date shall be the fair market value as mutually determined by Purchaser and the Company for which the calculation
of the closing bid price requires, and in the absence of such mutual determination, as determined by the Board of Directors of
the Company in good faith.

 

“Closing Date” means the date
on which all of the conditions set forth in Sections 6.1 and 6.2 shall have been satisfied and Convertible Bridge Notes in
the aggregate principal amount of $__________ are issued by the Company to Purchaser.

 

“Code” means the Internal Revenue
Code of 1986, as amended.

 

“Commission” means the Securities
and Exchange Commission or any entity succeeding to all of its material functions.

 

“Common Stock” means common
stock, no par value per share, of the Company.

 

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“Company” means 3DICON Corporation,
an Oklahoma corporation and its successors.

 

“Company Corporate Documents”
means the certificate of incorporation and bylaws of the Company.

 

“Consolidated Net Worth” means
at any date the total shareholder’s equity which would appear on a consolidated balance sheet of the Company prepared as
of such date.

 

“Consolidated Subsidiary” means
at any date with respect to any Person or Subsidiary or other entity, the accounts of which would be consolidated with those of
such Person in its consolidated financial statements if such statements were prepared as of such date.

 

“Control” (including, with correlative
meanings, the terms “Controlling,” “Controlled by” and under “common Control with”), as used
with respect to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the
management and policies of that Person, whether through the ownership of voting securities, by contract or otherwise.

 

“Conversion Date” shall mean
the date of delivery (including delivery via telecopy or email) of a Notice of Conversion for all or a portion of a Convertible
Bridge Note by the holder thereof to the Company as specified in each Convertible Bridge Note.

 

“Conversion Price” has the meaning
set forth in the Convertible Bridge Notes.

 

“Conversion Shares” has the
meaning set forth in the Recitals.

 

“Convertible Bridge Notes” means
the Company’s Convertible Bridge Notes substantially in the form set forth as Exhibit A hereto.

 

“Deadline” has the meaning set
forth in Section 10.1.

 

“Debt” of any Person means at
any date, without duplication, (i) all obligations of such Person for borrowed money, (ii) all obligations of such Person
evidenced by bonds, debentures, notes, or other similar instruments issued by such Person, (iii) all obligations of such Person
as lessee which (y) are capitalized in accordance with GAAP or (z) arise pursuant to sale-leaseback transactions, (iv) all
reimbursement obligations of such Person in respect of letters of credit or other similar instruments, (v) all Debt of others
secured by a Lien on any asset of such Person, whether or not such Debt is otherwise an obligation of such Person and (vi) all
Debt of others Guaranteed by such Person.

 

“Default” means any event or
condition which constitutes an Event of Default or which with the giving of notice or lapse of time or both would, unless cured
or waived, become an Event of Default.

 

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“Derivative Securities” has
the meaning set forth in Section 8.6.

 

“Discounted Equity Offerings”
has the meaning set forth in Section 8.6.

 

“Directors” means the individuals
then serving on the Board of Directors or similar such management council of the Company.

 

“Environmental Laws” means any
and all federal, state, local and foreign statutes, laws, regulations, ordinances, rules, judgments, orders, decrees, permits,
concessions, grants, franchises, licenses, agreements or other governmental restrictions relating to the environment or to emissions,
discharges or releases of pollutants, contaminants, petroleum or petroleum products, chemicals or industrial, toxic or hazardous
substances or wastes into the environment, including, without limitation, ambient air, surface water, ground water, or land, or
otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of pollutants,
contaminants, petroleum or petroleum products, chemicals or industrial, toxic or hazardous substances or wastes or the cleanup
or other remediation thereof.

 

“ERISA” means the Employee Retirement
Income Security Act of 1974, as amended, or any successor statute.

 

“ERISA Group” means the Company
and each Subsidiary and all members of a controlled group of corporation and all trades or businesses (whether or not incorporated)
under common control which, together with the Company or any Subsidiary, is treated as a single employer under the Code.

 

“Event of Default” has the meaning
set forth in Article 13 hereof.

 

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

 

“Financing” means a public or
private financing consummated (meaning closing and funding) through the issuance of debt or equity securities (or securities convertible
into or exchangeable for debt or equity securities) of the Company, other than Permitted Financings.

 

“Fixed Price(s)” has the meaning
set forth in Section 11.1.

 

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“GAAP” has the meaning set forth
in Section 1.2.

 

“Guarantee” by any Person means
any obligation, contingent or otherwise, of such Person directly or indirectly guaranteeing (whether by virtue of partnership arrangements,
by agreement to keep well, to purchase assets, goods, securities or services, to take-or-pay, or to maintain a minimum net worth,
financial ratio or similar requirements, or otherwise) any Debt of any other Person and, without limiting the generality of the
foregoing, any obligation, direct or indirect, contingent or otherwise, of such Person (i) to purchase or pay (or advance
or supply funds for the purchase or payment of) such Debt or (ii) entered into for the purpose of assuring in any other manner
the holder of such Debt of the payment thereof or to protect such holder against loss in respect thereof (in whole or in part);
provided that the term Guarantee shall not include endorsements for collection or deposit in the ordinary course of business.
The term Guarantee used as a verb has a corresponding meaning.

 

“Hazardous Materials” means
any hazardous materials, hazardous wastes, hazardous constituents, hazardous or toxic substances or petroleum products (including
crude oil or any derivative or fraction thereof), defined or regulated as such in or under any Environmental Laws.

 

“Investment” means any investment
in any Person, whether by means of share purchase, partnership interest, capital contribution, loan, time deposit or otherwise.

 

“Lien” means any lien, mechanic’s
lien, material men’s lien, lease, easement, charge, encumbrance, mortgage, conditional sale agreement, title retention agreement,
agreement to sell or convey, option, claim, title imperfection, encroachment or other survey defect, pledge, restriction, security
interest or other adverse claim, whether arising by contract or under law or otherwise (including, without limitation, any financing
lease having substantially the same economic effect as any of the foregoing, and the filing of any financing statement under the
Uniform Commercial Code or comparable law of any jurisdiction in respect of any of the foregoing).

 

“Majority Holders” means (i) as
of the Closing Date, Purchaser and (ii) at any time thereafter, the holders of more than 50% in aggregate principal amount
of the 6% Convertible Bridge Notes.

 

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“Market Price” shall mean the
Closing Bid Price of the Common Stock preceding the date of determination.

 

“Material Plan” means at any
time a Plan or Plans having aggregate Unfunded Liabilities in excess of $50,000.

 

“Maturity Date” shall mean the
date of maturity of the Convertible Bridge Notes.

 

“Maximum Number of Shares” shall
mean that percentage that the Company may issue without shareholder approval under the applicable rules of the National Market
or the applicable OTC Bulletin Board or equivalent entity, of the then issued and outstanding shares of Common Stock of the Company
as of the applicable date of determination, or such greater number of shares as the stockholders of the Company may have previously
approved.

 

“Nasdaq Market” means the Nasdaq
Stock Market’s National Market System.

 

“National Market” means the
Nasdaq Market, the Nasdaq Small Cap Market, the New York Stock Exchange, Inc. or the American Stock Exchange, Inc..

 

“Net Cash Proceeds” means, with
respect to any transaction, the total amount of cash proceeds received by the Company or any Subsidiary less (i) reasonable
underwriters’ fees, brokerage commissions, reasonable professional fees and other customary out-of-pocket expenses payable
in connection with such transaction, and (ii) in the case of dispositions of assets, (A) actual transfer taxes (but not
income taxes) payable with respect to such dispositions, and (B) the amount of Debt, if any, secured by a Lien on the asset
or assets disposed of and required to be, and actually repaid by the Company or any Subsidiary in connection therewith, and any
trade payables specifically relating to such asset or assets sold by the Company or any Subsidiary that are not assumed by the
purchaser of such asset or assets.

 

“Notice of Conversion” means
the form to be delivered by a holder of a Convertible Bridge Note upon conversion of all or a portion thereof to the Company substantially
in the form of Exhibit A to the form of Convertible Bridge Note.

 

“Officer’s Certificate”
shall mean a certificate executed by the President, chief executive officer or chief financial officer of the Company in the form
of Exhibit D attached hereto.

 

"OTC Bulletin Board" means the
over-the-counter bulletin board operated by the NASD.

 

“PBGC” means the Pension Benefit
Guaranty Corporation or any entity succeeding to any or all of its functions under ERISA.

 

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“Permits” means all domestic
and foreign licenses, franchises, grants, authorizations, permits, easements, variances, exemptions, consents, certificates, orders
and approvals necessary to own, lease and operate the properties of, and to carry on the business of the Company and the Subsidiaries.

 

“Permitted Financings” means
a secondary registered offering of securities of the Company, the extension or draw down of debt securities currently outstanding,
or other financing transactions specifically consented to in writing by Purchaser.

 

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

 

“Plan” means at any time an
employee pension benefit plan which is covered by Title IV of ERISA or subject to the minimum funding standards under the
Code and either (i) is maintained, or contributed to, by any member of the ERISA group for employees of any member of the
ERISA group or (ii) has at any time within the preceding five years been maintained, or contributed to, by any Person which
was at such time a member of the ERISA group for employees of the Person which was at such time a member of the ERISA Group.

 

“Purchase Price” means the purchase
price for the Securities set forth in Section 2.2 hereof.

 

“Purchaser” means the entity
listed on the signature page hereto and its successors and assigns, including holders from time to time of the Convertible Bridge
Notes.

 

“Recourse Financing” means Debt
of the Company or any Subsidiary which, by its terms, does not bar the lender thereof from action against the Company or any Subsidiary,
as borrower or guarantor, if the security value of the project or asset pledged in respect thereof falls below the amount required
to repay such Debt.

 

“Redemption Event” has the meaning
set forth in Section 3.4.

 

“Restricted Payment” means,
with respect to any Person, (i) any dividend or other distribution on any shares of capital stock of such Person (except dividends
payable solely in shares of capital stock of the same or junior class of such Person and dividends from a wholly-owned direct or
indirect Subsidiary of the Company to its parent corporation), (ii) any payment on account of the purchase, redemption, retirement
or acquisition of (a) any shares of such Person’s capital stock or (b) any option, warrant or other right to acquire
shares of such Person’s capital stock or (iii) any loan, or advance or capital contribution to any Person (a “
Stockholder”) owning any capital stock of such Person other than relocation, travel or like advances to officers and employees
in the ordinary course of business, and other than reasonable compensation as determined by the Board of Directors.

 

“Rights Offering” has the meaning
set forth in Section 11.3.

 

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“Sale Event” has the meaning
set forth in Section 3.4.

 

“SEC Reports” has the meaning
set forth in Section 7.1(a).

 

“Securities” means the Convertible
Bridge Notes, and, as applicable, the Conversion Shares.

 

“Securities Act” means the Securities
Act of 1933, as amended.

 

“Security Agreement” has the
meaning set forth in the recitals.

 

“Share Reorganization” has the
meaning set forth in Section 11.2.

 

“Solvency Certificate” shall
mean a certificate executed by the treasurer of the Company as to the solvency of the Company, the adequacy of its capital and
its ability to pay its debts, all after giving effect to the issuance and sale of the Convertible Bridge Notes and the completion
of the offering (including without limitation the payment of any fees or expenses in connection therewith), which such Solvency
Certificate shall be in the form of Exhibit C attached hereto.

 

“Special Distribution” has the
meaning set forth in Section 11.4.

 

“Subsidiary” means, with respect
to any Person, any corporation or other entity of which (x) a majority of the capital stock or other ownership interests having
ordinary voting power to elect a majority of the Board of Directors or other persons performing similar functions are at the time
directly or indirectly owned by such Person or (y) the results of operations, the assets and the liabilities of which are
consolidated with such Person under GAAP.

 

“Subsidiary Corporate Documents”
means the certificates of incorporation and bylaws of each Subsidiary.

 

“Taxes” has the meaning set
forth in Section 3.6.

 

“Trading Day” shall mean any
Business Day in which the OTC Bulletin Board, National Market or other automated quotation system or exchange on which the Common
Stock is then traded is open for trading for at least four (4) hours.

 

“Transaction Agreements” means
this Agreement, the Convertible Bridge Notes, , and the any other agreements contemplated by this Agreement.

 

“Transfer” means any disposition
of Securities that would constitute a sale thereof under the Securities Act.

 

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“Unfunded Liabilities” means,
with respect to any Plan at any time, the amount (if any) by which (i) the present value of all benefits under Plan exceeds
(ii) the fair market value of all Plan assets allocable to such benefits (excluding any accrued but unpaid contributions),
all determined as of the then most recent valuation date for such Plan, but only to the extent that such excess represents a potential
liability of a member of the ERISA Group to the PBGC or any other Person under Title IV of ERISA.

 

2           
Accounting Terms and Determinations . Unless otherwise specified herein, all accounting terms used herein shall be interpreted,
all accounting determinations hereunder shall be made, and all financial statements required to be delivered hereunder shall be
prepared, in accordance with generally accepted accounting principles as in effect from time to time, applied on a consistent basis
(except for changes concurred in by the Company’s independent public accountants) (“ GAAP”). All references to
“dollars,” “Dollars” or “$” are to United States dollars unless otherwise indicated.

 

ARTICLE 2. PURCHASE AND SALE OF SECURITIES

 

1            Purchase
and Sale of Convertible Bridge Notes .

 

(a)         Subject
to the terms and conditions set forth herein, the Company agrees to issue and sell to Purchaser, and Purchaser agrees to purchase
from the Company, Convertible Bridge Notes up to the aggregate face amount.

 

(b)        Purchaser
shall acquire Convertible Bridge Notes on the Closing Date in an aggregate face amount of ________________ ($__________.00).

 

2           Purchase
Price. The purchase price for the Convertible Bridge Notes on the Closing Date is $________ (the “ Purchase Price”).

 

ARTICLE 3. PAYMENT TERMS OF CONVERTILE
BRIDGE NOTES

 

1         Payment
of Principal and Interest; Payment Mechanics. The Company will pay all amounts due on the Convertible Bridge Note by the method
and at the address specified for such purpose by Purchaser in writing, without the presentation or surrender of any Convertible
Bridge Note or the making of any notation thereon, except that upon written request of the Company made concurrently with or reasonably
promptly after payment or prepayment in full of this Convertible Bridge Note, the holder shall surrender the Convertible Bridge
Note for cancellation, reasonably promptly after any such request, to the Company at its principal executive office. Prior to any
sale or other disposition of any Convertible Bridge Note, the holder thereof will, at its election, either endorse thereon the
amount of principal paid thereon and the last date to which interest has been paid thereon or surrender the Convertible Bridge
Note to the Company in exchange for a new Convertible Bridge Note or Convertible Bridge Notes. The Company will afford the benefits
of this Section 3.1 to any direct or indirect transferee of the Convertible Bridge Note purchased under this Agreement and
that has made the same agreement relating to this Convertible Bridge Note as Purchaser has in this Section 3.1; provided that
such transferee is an “accredited investor” under Rule 501 of the Securities Act.

 

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2               Voluntary
Prepayment . For so long as no Event of Default shall have occurred and is continuing, the Company may, at its option, repay,
in whole or in part, the Convertible Bridge Notes, per the formula set forth in Section 5.1 of Exhibit A hereto, thereof
following at least five (5) Business Days prior written notice to Purchaser (the expiration of such five (5) Business Day period
being referred to as the “prepayment date”); provided, however, that if such date is not a Business Day,
the prepayment date shall be the next Business Day thereafter.

 

3               Mandatory
Prepayments .

 

(a)         Upon
(i) the occurrence of a Change in Control of the Company, (ii) a transfer of all or substantially all of the assets of
the Company to any Person in a single transaction or series of related transactions, or (iii) a consolidation, merger or amalgamation
of the Company with or into another Person in which the Company is not the surviving entity (other than a merger which is effected
solely to change the jurisdiction of incorporation of the Company and results in a reclassification, conversion or exchange of
outstanding shares of Common Stock solely into shares of Common Stock) (each of items (i), (ii) and (iii) being referred to as
a “ Sale Event”), , then, in each case, the Company shall, upon request of the Majority Holders, redeem the Convertible
Bridge Notes, subject to the provisions of Section 5 of the Convertible Bridge Notes. The redemption price payable upon
any such redemption shall be the Redemption Price in Section 5 of the Convertible Bridge Notes (referred to herein as the
"Formula Price").

 

(b)         At
the option of Purchaser, upon the consummation of one or more Financings, the Company shall use 100% of the Net Cash Proceeds therefrom
(unless such Net Cash Proceeds from each such Financing is less than $300,000) to redeem the Convertible Bridge Notes.

 

4              Prepayment
Procedures.

 

(a)         Any
permitted prepayment or redemption of the Convertible Bridge Notes, as applicable pursuant to Sections 3.2 or 3.3 above shall
be deemed to be effective and consummated (for purposes of determining the Formula Price and the time at which Purchaser shall
thereafter not be entitled to deliver a Notice of Conversion for the Convertible Bridge Notes) as follows:

 

(i)           A
prepayment pursuant to Section 3.2, the “prepayment date” specified therein;

 

(ii)          A
redemption pursuant to Section 3.3(a), the date of consummation of the applicable Sale Event; and

 

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(iii)         A
redemption pursuant to Section 3.3(b), three (3) Business Days following the date of consummation of the applicable Financing
(meaning closing and funding).

 

(b)          On
the Maturity Date and on the effective date of a repayment or redemption of the Convertible Bridge Notes as specified in Section 3.4(a)
above, the Company shall deliver by wire transfer of funds the repayment/redemption price to Purchaser of the Convertible Bridge
Notes subject to redemption. Should Purchaser not receive payment of any amounts due on redemption of its Convertible Bridge Notes
by reason of the Company’s failure to make payment at the times prescribed above for any reason, the Company shall pay to
the applicable holder on demand (x) interest on the sums not paid when due at an annual rate equal to the maximum lawful rate
compounded at the end of each thirty (30) days, until the applicable holder is paid in full and (y) all costs of collection,
including, but not limited to, reasonable attorneys’ fees and costs, whether or not suit or other formal proceedings are
instituted.

 

(c)         The
Company shall select the Convertible Bridge Notes to be redeemed in any redemption in which not all of the Convertible Bridge Notes
are to be redeemed so that the ratio of the Convertible Bridge Notes of each holder selected for redemption to the total Convertible
Bridge Notes owned by that holder shall be the same as the ratio of all such Convertible Bridge Notes selected for redemption bears
to the total of all then outstanding Convertible Bridge Notes. Should any Convertible Bridge Notes required to be redeemed under
the terms hereof not be redeemed solely by reason of limitations imposed by law, the applicable Convertible Bridge Notes shall
be redeemed on the earliest possible dates thereafter to the maximum extent permitted by law.

 

(d)         Any
Notice of Conversion delivered by Purchaser (including delivery via telecopy) to the Company prior to the (x) Maturity Date
or (y) effective date of a voluntary repayment pursuant to Section 3.3 or a mandatory prepayment pursuant to Section 3.4
as specified in Section 3.5(a) above), shall be honored by the Company and the conversion of the Convertible Bridge Notes
shall be deemed effected on the Conversion Date. In addition, between the effective date of a voluntary prepayment pursuant to
Section 3.3 or a mandatory prepayment pursuant to Section 3.4 as specified in Section 3.5(a) above and the date
the Company is required to deliver the redemption proceeds in full to Purchaser, Purchaser may deliver a Notice of Conversion to
the Company. Such notice will be (x) of no force or effect if the Company timely pays the redemption proceeds to Purchaser
when due or (y) honored on or as of the date of the Notice of Conversion if the Company fails to timely pay the redemption
proceeds to Purchaser when due.

 

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		5	Payment of Additional Amounts.

 

(a)          Any
and all payments by the Company hereunder or under the Convertible Bridge Notes to Purchaser and each “qualified assignee”
thereof shall be made free and clear of and without deduction or withholding for any and all present or future taxes, levies, imposts,
deductions, charges or withholdings, and all liabilities with respect thereto (all such taxes, levies, imposts, deductions, charges,
withholdings and liabilities being hereinafter referred to as “ Taxes”) unless such Taxes are required by law or the
administration thereof to be deducted or withheld. If the Company shall be required by law or the administration thereof to deduct
or withhold any Taxes from or in respect of any sum payable under the Convertible Bridge Notes (i) the holders of the Convertible
Bridge Notes subject to such Taxes shall have the right, but not the obligation, for a period of thirty (30) days commencing upon
the day it shall have received written notice from the Company that it is required to withhold Taxes to transfer all or any portion
of the Convertible Bridge Notes to a qualified assignee to the extent such transfer can be effected in accordance with the other
provisions of this Agreement and applicable law; (ii) the Company shall make such deductions or withholdings; (iii) the
sum payable shall be increased as may be necessary so that after making all required deductions or withholdings (including deductions
or withholdings applicable to additional amounts paid under this Section 3.5) Purchaser receives an amount equal to the sum
it would have received if no such deduction or withholding had been made; and (iv) the Company shall forthwith pay the full
amount deducted or withheld to the relevant taxation or other authority in accordance with applicable. A “qualified assignee”
of a Purchaser is a Person that is organized under the laws of (i) the United States or (II) any jurisdiction other than
the United States or any political subdivision thereof and that (y) represents and warrants to the Company that payments of
the Company to such assignee under the laws in existence on the date of this Agreement would not be subject to any Taxes and (z) from
time to time, as and when requested by the Company, executes and delivers to the Company and the Internal Revenue Service forms,
and provides the Company with any information necessary to establish such assignee’s continued exemption from Taxes under
applicable law.

 

(b)          The
Company shall forthwith pay any present or future stamp or documentary taxes or any other excise or property taxes, charges or
similar levies (all such taxes, charges and levies hereinafter referred to as “ Other Taxes”) which arise from any
payment made under any of the Transaction Agreements or from the execution, delivery or registration of, or otherwise with respect
to, this Agreement other than Taxes payable solely as a result of the transfer from Purchaser to a Person of any Security.

 

(c)          The
Company shall indemnify Purchaser, or qualified assignee, for the full amount of Taxes or Other Taxes (including, without limitation,
any Taxes or Other Taxes imposed by any jurisdiction on amounts payable under this Section 3.5) paid by Purchaser, or qualified
assignee, and any liability (including penalties, interest and expenses) arising therefrom or with respect thereto, whether or
not such Taxes or Other Taxes were correctly or legally asserted. Payment under this indemnification shall be made within 30 days
from the date Purchaser or assignee makes written demand therefor. A certificate as to the amount of such Taxes or Other Taxes
submitted to the Company by Purchaser or assignee shall be conclusive evidence of the amount due from the Company to such party.

 

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(d)          Within
30 days after the date of any payment of Taxes, the Company will furnish to Purchaser the original or a certified copy of a receipt
evidencing payment thereof.

 

(e)          Purchaser
shall provide to the Company a form W-8, stating that it is a non-U.S. person, together with any additional tax forms which may
be required under the Code, as amended after the date hereof, to allow interest payments to be made to it without deduction.

 

ARTICLE 4. REPRESENTATIONS AND WARRANTIES

 

The Company represents and warrants to Purchaser,
as of the Closing Date and again at the closing of each Subsequent Takedown, the following:

 

1              Organization
and Qualification. The Company and each Subsidiary is a corporation (or other legal entity) duly organized, validly existing
and in good standing under the laws of its jurisdiction of incorporation, with full power and authority to own, lease, use and
operate its properties and to carry on its business as and where now owned, leased, used, operated and conducted. The Company is
qualified to conduct business as a foreign corporation and is in good standing in every jurisdiction in which the nature of the
business conducted by it makes such qualification necessary, except where such failure would not have a Material Adverse Effect.
A “ Material Adverse Effect” means any material adverse effect on the operations, results of operations, properties,
assets or condition (financial or otherwise) of the Company or the Company and its Subsidiaries, taken as a whole, or on the transactions
contemplated hereby or by the agreements or instruments to be entered into in connection herewith.

 

		2	Authorization and Execution.

 

(a)         The
Company has all requisite corporate power and authority to enter into and perform each Transaction Agreement and to consummate
the transactions contemplated hereby and thereby and to issue the Securities in accordance with the terms hereof and thereof.

 

(b)          The
execution, delivery and performance by the Company of each Transaction Agreement and the issuance by the Company of the Securities
have been duly and validly authorized and no further consent or authorization of the Company, its Board of Directors or its shareholders
is required.

 

(c)          This
Agreement has been duly executed and delivered by the Company.

 

    	13

    	 

    

 

(d)          This
Agreement constitutes, and upon execution and delivery thereof by the Company, each of the Transaction Agreements will constitute,
a valid and binding agreement of the Company, in each case enforceable against the Company in accordance with its respective terms.

 

3             Capitalization.
As of the date hereof, the authorized, issued and outstanding capital stock of the Company is as set forth on Schedule 4.3
hereto and except as set forth on Schedule 4.3 no other shares of capital stock of the Company will be outstanding as of
the Closing Date. All of such outstanding shares of capital stock are, or upon issuance will be, duly authorized, validly issued,
fully paid and nonassessable. No shares of capital stock of the Company are subject to preemptive rights or similar rights of the
stockholders of the Company or any liens or encumbrances imposed through the actions or failure to act of the Company. Other than
as set forth on Schedule 4.3 hereto, as of the date hereof, (i) there are no outstanding options, warrants, scrip,
rights to subscribe for, puts, calls, rights of first refusal, agreements, understandings, claims or other commitments or rights
of any character whatsoever relating to, or securities or rights convertible into or exchangeable for any shares of capital stock
of the Company or any of its Subsidiaries, or arrangements by which the Company or any of its Subsidiaries is or may become bound
to issue additional shares of capital stock of the Company or any of its Subsidiaries, and (ii) there are no agreements or
arrangements under which the Company or any of its Subsidiaries are obligated to register the sale of any of its or their securities
under the Securities Act and (iii) there are no anti-dilution or price adjustment provisions contained in any security issued
by the Company (or in any agreement providing rights to security holders) that will be triggered by the issuance of the Convertible
Bridge Notes or Conversion Shares. The Company has furnished to Purchaser true and correct copies of the Company’s Corporate
Documents, and the terms of all securities convertible into or exercisable for Common Stock and the material rights of the holders
thereof in respect thereto.

 

4            Governmental
Authorization. The execution and delivery by the Company of the Transaction Agreements does not and will not, the issuance
and sale by the Company of the Securities does not and will not, and the consummation of the transactions contemplated hereby and
by the other Transaction Agreements will not, require any action by or in respect of, or filing with, any governmental body, agency
or governmental official except (a) such actions or filings that have been undertaken or made prior to the date hereof and
that will be in full force and effect (or as to which all applicable waiting periods have expired) on and as of the date hereof
or which are not required to be filed on or prior to the Closing Date and (b) such actions or filings that, if not obtained,
would not result in a Material Adverse Effect.

 

    	14

    	 

    

 

5            Issuance
of Shares. Upon conversion in accordance with the terms of the Convertible Bridge Notes, the Conversion Shares shall be duly
and validly issued and outstanding, fully paid and nonassessable, free and clear of any Taxes, Liens and charges with respect to
issuance and shall not be subject to preemptive rights or similar rights of any other stockholders of the Company. Assuming the
representations and warranties of Purchaser herein are true and correct in all material respects, each of the Securities will have
been issued in material compliance with all applicable U.S. federal and state securities laws. The Company understands and acknowledges
that, in certain circumstances, the issuance of Conversion Shares could dilute the ownership interests of other stockholders of
the Company. The Company further acknowledges that its obligation to issue Conversion Shares upon conversion of the Convertible
Bridge Notes is absolute and unconditional regardless of the dilutive effect that such issuance may have on the ownership interests
of other stockholders of the Company.

 

6            No
Conflicts. The execution and delivery by the Company of the Transaction Agreements to which it is a party did not and will
not, the issuance and sale by the Company of the Securities did not and will not and the consummation of the transactions contemplated
hereby and by the other Transaction Agreements will not, contravene or constitute a default under or violation of (i) any
provision of applicable law or regulation, (ii) the Company Corporate Documents, (iii) any agreement, judgment, injunction,
order, decree or other instrument binding upon the Company or any Subsidiary or any of their respective assets, or result in the
creation or imposition of any Lien on any asset of the Company or any Subsidiary. The Company and each Subsidiary is in compliance
with and conforms to all statutes, laws, ordinances, rules, regulations, orders, restrictions and all other legal requirements
of any domestic or foreign government or any instrumentality thereof having jurisdiction over the conduct of its businesses or
the ownership of its properties, except where such failure would not have a Material Adverse Effect.

 

7            Financial
Information. Since December 31, 2011 (the “ Balance Sheet Date”), except as disclosed in Schedule 4.7, there
has been (x) no material adverse change in the assets or liabilities, or in the business or condition, financial or otherwise,
or in the results of operations or prospects, of the Company and its Subsidiaries, whether as a result of any legislative or regulatory
change, revocation of any license or rights to do business, fire, explosion, accident, casualty, labor trouble, flood, drought,
riot, storm, condemnation, act of God, public force or otherwise and (y) no material adverse change in the assets or liabilities,
or in the business or condition, financial or otherwise, or in the results of operations or prospects, of the Company and its subsidiaries
except in the ordinary course of business; and no fact or condition exists or is contemplated or threatened which might cause such
a change in the future. The unaudited consolidated balance sheets of the Company and its Subsidiaries for the periods ending December
31, 2009, 2010 and 2011, and the related consolidated statements of income, changes in stockholders’ equity and changes in
cash flows for the periods then ended, including the footnotes thereto, except as indicated therein, (i) complied in all material
respects with applicable accounting requirements and (ii) have been prepared in accordance with GAAP consistently applied
throughout the periods indicated, except that the unaudited financial statements do not contain notes and may be subject to normal
audit adjustments and normal annual adjustments. Such financial statements fairly present the financial condition of the Company
and its Subsidiaries at the dates indicated and the consolidated results of their operations and cash flows for the periods then
ended and, except as indicated therein, reflect all claims against and all Debts and liabilities of the Company and its Subsidiaries,
fixed or contingent.

 

    	15

    	 

    

 

8               Litigation.
Except as set forth on Schedule 4.8, there is no action, suit or proceeding pending or, to the knowledge of the Company,
threatened against the Company or any Subsidiary, before any court or arbitrator or any governmental body, agency or official in
which there is a reasonable possibility of an adverse decision which could materially adversely affect the business, condition
(financial or otherwise), operations, performance, properties or prospects of the Company or which challenges the validity of any
Transaction Agreements.

 

9               Compliance
with ERISA and other Benefit Plans.

 

(a)          Each
member of the ERISA Group has fulfilled its obligations under the minimum funding standards of ERISA and the Code with respect
to each Plan and is in compliance in all material respects with the presently applicable provisions of ERISA and the Code with
respect to each Plan. No member of the ERISA Group has (i) sought a waiver of the minimum funding standard under Section 412 of
the Code in respect of any Plan, (ii) failed to make any required contribution or payment to any Plan or Multiemployer Plan or
in respect of any Benefit Arrangement, or made any amendment to any Plan or Benefit Arrangement, which as resulted or could result
in the imposition of a Lien or the posting of a bond or other security under ERISA or the Code or (iii) incurred any liability
under Title IV of ERISA other than a liability to the PBGC for premiums under Section 4007 of ERISA.

 

(b)          The
benefit plans not covered under clause (a) above (including profit sharing, deferred compensation, stock option, employee stock
purchase, bonus, retirement, health or insurance plans, collectively the “ Benefit Plans”) relating to the employees
of the Company are duly registered where required by, and are in good standing in all material respects under, all applicable laws.
All required employer and employee contributions and premiums under the Benefit Plans to the date hereof have been made, the respective
fund or funds established under the Benefit Plans are funded in accordance with applicable laws, and no past service funding liabilities
exist thereunder.

 

(c)          No
Benefit Plans have any unfunded liabilities, either on a “going concern” or “winding up” basis and determined
in accordance with all applicable laws and actuarial practices and using actuarial assumptions and methods that are reasonable
in the circumstances. No event has occurred and no condition exists with respect to any Benefit Plans that has resulted or could
reasonably be expected to result in any pension plan having its registration revoked or wound up (in whole or in part) or refused
for the purposes of any applicable laws or being placed under the administration of any relevant pension benefits regulatory authority
or being required to pay any taxes or penalties (in any material amounts) under any applicable laws.

 

10            
Environmental Matters. The costs and liabilities associated with Environmental Laws (including the cost of compliance therewith)
are unlikely to have a material adverse effect on the business, condition (financial or otherwise), operations, performance, properties
or prospects of the Company or any Subsidiary. Each of the Company and the Subsidiaries conducts its businesses in compliance in
all material respects with all applicable Environmental Laws.

 

11           
Taxes. All United States federal, state, county, municipality, local or foreign income tax returns and all other material tax
returns (including foreign tax returns) which are required to be filed by or on behalf of the Company and each Subsidiary have
been filed and all material taxes due pursuant to such returns or pursuant to any assessment received by the Company and each Subsidiary
have been paid except those being disputed in good faith and for which adequate reserves have been established. The charges, accruals
and reserves on the books of the Company and each Subsidiary in respect of taxes and other governmental charges have been established
in accordance with GAAP.

 

    	16

    	 

    

 

12          
Investments, Joint Ventures. Other than as set forth in Schedule 4.12, the Company has no Subsidiaries or other direct
or indirect Investment in any Person, and the Company is not a party to any partnership, management, shareholders’ or joint
venture or similar agreement.

 

13          
Not an Investment Company. Neither the Company nor any Subsidiary is an “Investment Company” within the meaning
of Investment Company Act of 1940, as amended.

 

14          
Full Disclosure. The information heretofore furnished by the Company to Purchaser for purposes of or in connection with this
Agreement or any transaction contemplated hereby does not, and all such information hereafter furnished by the Company or any Subsidiary
to Purchaser will not (in each case taken together and on the date as of which such information is furnished), contain any untrue
statement of a material fact or omit to state a material fact necessary in order to make the statements contained therein, in the
light of the circumstances under which they are made, not misleading.

 

15          
No Solicitation; No Integration with Other Offerings. No form of general solicitation or general advertising was used by the
Company or, to the best of its actual knowledge, any other Person acting on behalf of the Company, in connection with the offer
and sale of the Securities. Neither the Company, nor, to its knowledge, any Person acting on behalf of the Company, has, either
directly or indirectly, sold or offered for sale to any Person (other than Purchaser) any of the Securities or, within the six
months prior to the date hereof, any other similar security of the Company except as contemplated by this Agreement, and the Company
represents that neither itself nor any Person authorized to act on its behalf (except that the Company makes no representation
as to Purchaser and their Affiliates) will sell or offer for sale any such security to, or solicit any offers to buy any such security
from, or otherwise approach or negotiate in respect thereof with, any Person or Persons so as thereby to cause the issuance or
sale of any of the Securities to be in violation of any of the provisions of Section 5 of the Securities Act. The issuance of the
Securities to Purchaser will not be integrated with any other issuance of the Company’s securities (past, current or future)
which requires stockholder approval.

 

16          
Permits. (a) Each of the Company and its Subsidiaries has all material Permits; (b) all such Permits are in full force and
effect, and each of the Company and its Subsidiaries has fulfilled and performed all material obligations with respect to such
Permits; (c) no event has occurred which allows, or after notice of lapse of time would allow, revocation or termination by the
issuer thereof or which results in any other material impairment of the rights of the holder of any such Permit; and (d) the Company
has no reason to believe that any governmental body or agency is considering limiting, suspending or revoking any such Permit.

 

    	17

    	 

    

 

17          
Leases. Neither the Company nor any Subsidiary is a party to any capital lease obligation with a value greater than $100,000
or to any operating lease with an aggregate annual rental greater than $100,000 during the life of such lease.

 

18          
Absence of Any Undisclosed Liabilities or Capital Calls. There are no liabilities of the Company or any Subsidiary of any kind
whatsoever, whether accrued, contingent, absolute, determined, determinable or otherwise, and there is no existing condition, situation
or set of circumstances which would reasonably be expected to result in such a liability, other than (i) those liabilities provided
for in the financial statements delivered pursuant to Section 4.7 and (ii) other undisclosed liabilities which, individually or
in the aggregate, would not have a Material Adverse Effect.

 

19          
Public Utility Holding Company. Neither the Company nor any Subsidiary is, or will be upon issuance and sale of the Securities
and the use of the proceeds described herein, subject to regulation under the Public Utility Holding Company Act of 1935, as amended,
the Federal Power Act, the Interstate Commerce Act or to any federal or state statute or regulation limiting its ability to issue
and perform its obligations under any Transaction Agreement.

 

20          
Intellectual Property Rights. Each of the Company and its Subsidiaries owns, or is licensed under, and has the rights to use,
all material patents, trademarks, trade names, copyrights, technology, know-how and processes (collectively, “ Intellectual
Property”) used in, or necessary for the conduct of its business; no claims have been asserted by any Person to the use of
any such Intellectual Property or challenging or questioning the validity or effectiveness of any license or agreement related
thereto. To the best of Company’s and its Subsidiaries’ knowledge, there is no valid basis for any such claim and the
use of such Intellectual Property by the Company and its Subsidiaries will not infringe upon the rights of any Person.

 

21          
Insurance. The Company and its Subsidiaries maintain, with financially sound and reputable insurance companies, insurance in
at least such amounts and against such risks such that any uninsured loss would not have a Material Adverse Effect. All insurance
coverages of the Company and its Subsidiaries are in full force and effect and there are no past due premiums in respect of any
such insurance.

 

22          
Title to Properties. The Company and its Subsidiaries have good and marketable title to all their respective properties free
and clear of all Liens.

 

23          
Internal Accounting Controls. The Company and each of its Subsidiaries maintain a system of internal accounting controls sufficient,
in the judgment of the Company’s Board of Directors, to provide reasonable assurance that (i) transactions are executed in
accordance with managements’ general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation
of financial statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted only
in accordance with management’s general or specific authorization, and (iv) the recorded accountability for assets is compared
with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences.

 

    	18

    	 

    

 

24           
Intentionally Omitted .

 

25           
Foreign Practices. Neither the Company nor any of its Subsidiaries nor, to the Company’s knowledge, any employee or agent
of the Company or any Subsidiary has made any payments of funds of the Company or Subsidiary, or received or retained any funds,
in each case in violation of any law, rule or regulation.

 

26           
Title to Certain Assets . The Company owns the assets designated as collateral and described on Exhibit A to the Security Agreement,
free and clear of any lien or encumbrance.

 

ARTICLE 5. REPRESENTATIONS AND WARRANTIES
OF PURCHASER

 

		1	Purchaser. Purchaser hereby represents and warrants to the Company that:

 

(a)          Purchaser
is an “accredited investor” within the meaning of Rule 501(a) under the Securities Act and the Securities to be acquired
by it pursuant to this Agreement are being acquired for its own account and, as of the date hereof, not with a view toward, or
for sale in connection with, any distribution thereof except in compliance with applicable United States federal and state securities
law; provided that the disposition of Purchaser’s property shall at all times be and remain within its control;

 

(b)          the
execution, delivery and performance of this Agreement and the purchase of the Securities pursuant thereto are within Purchaser’s
corporate or partnership powers, as applicable, and have been duly and validly authorized by all requisite corporate or partnership
action;

 

(c)          this
Agreement has been duly executed and delivered by Purchaser;

 

(d)          the
execution and delivery by Purchaser of the Transaction Agreements to which it is a party does not, and the consummation of the
transactions contemplated hereby and thereby will not, contravene or constitute a default under or violation of (i) any provision
of applicable law or regulation, or (ii) any agreement, judgment, injunction, order, decree or other instrument binding upon Purchaser;

 

(e)          Purchaser
understands that the Securities have not been registered under the Securities Act and may not be transferred or sold except as
specified in this Agreement or the remaining Transaction Agreements;

 

(f)          this
Agreement constitutes a valid and binding agreement of Purchaser enforceable in accordance with its terms, subject to (i) applicable
bankruptcy, insolvency or similar laws affecting the enforceability of creditors rights generally and (ii) equitable principles
of general applicability;

    	19

    	 

    

 

(g)          Purchaser
has such knowledge and experience in financial and business matters so as to be capable of evaluating the merits and risks of its
investment in the Securities and Purchaser is capable of bearing the economic risks of such investment;

 

(h)          Purchaser
is knowledgeable, sophisticated and experienced in business and financial matters; Purchaser has previously invested in securities
similar to the Securities and fully understands the limitations on transfer described herein; Purchaser has been afforded access
to information about the Company and the financial condition, results of operations, property, management and prospects of the
Company sufficient to enable it to evaluate its investment in the Securities; Purchaser has been afforded the opportunity to ask
such questions as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms
and conditions of the offering of the Securities and the merits and the risks of investing in the Securities; and Purchaser has
been afforded the opportunity to obtain such additional information which the Company possesses or can acquire that is necessary
to verify the accuracy and completeness of the information given to Purchaser concerning the Company. The foregoing does not in
any way relieve the Company of its representations and other undertakings hereunder, and shall not limit Purchaser’s ability
to rely thereon;

 

(i)          no
part of the source of funds used by Purchaser to acquire the Securities constitutes assets allocated to any separate account maintained
by Purchaser in which any employee benefit plan (or its related trust) has any interest; and

 

(j)          the
information provided by the Purchaser in the Investor Questionnaire, attached hereto as Exhibit E, is true and accurate.

 

ARTICLE 6. CONDITIONS PRECEDENT TO
PURCHASE OF SECURITIES

 

1               Conditions
Precedent to Purchaser’s Obligations to Purchase. The obligation of Purchaser hereunder to purchase the Convertible Bridge
Notes at the Closing is subject to the satisfaction, on or before the Closing Date, of each of the following conditions, provided
that these conditions are for Purchaser’s sole benefit and may be waived by Purchaser at any time in its sole discretion:

 

(a)          The
Company shall have duly executed this Agreement, and all other appropriate financing statements, and delivered the same to Purchaser;

 

(b)          The
Company shall have delivered to Purchaser duly executed certificates representing the Convertible Bridge Notes in accordance with
Section 2.1 hereof;

 

(c)          The
Company shall have delivered the Solvency Certificate;

 

    	20

    	 

    

 

(d)          The
representations and warranties of the Company contained in each Transaction Agreement shall be true and correct in all material
respects as of the date when made and as of the Closing Date as though made at such time (except for representations and warranties
that speak as of a specified date) and the Company shall have performed, satisfied and complied with all covenants, agreements
and conditions required by such Transaction Agreements to be performed, satisfied or complied with by it at or prior to the Closing
Date. Purchaser shall have received an Officer’s Certificate executed by the chief executive officer of the Company, dated
as of the Closing Date, to the foregoing effect and as to such other matters as may be reasonably requested by Purchaser, including
but not limited to certificates with respect to the Company Corporate Documents, resolutions relating to the transactions contemplated
hereby and the incumbencies of certain officers and Directors of the Company. The form of such certificate is attached hereto as
Exhibit D;

 

(e)          The
Company shall have received all governmental, Board of Directors, shareholders and third party consents and approvals necessary
or desirable in connection with the issuance and sale of the Securities and the consummation of the transactions contemplated by
the Transaction Agreements;

 

(f)          All
applicable waiting periods in respect to the issuance and sale of the Securities shall have expired without any action having been
taken by any competent authority that could restrain, prevent or impose any materially adverse conditions thereon or that could
seek or threaten any of the foregoing;

 

(g)          No
law or regulation shall have been imposed or enacted that, in the judgment of Purchaser, could adversely affect the transactions
set forth herein or in the other Transaction Agreements, and no law or regulation shall have been proposed that in the reasonable
judgment of Purchaser could reasonably have any such effect;

 

(h)          omitted

 

(i)          All
fees and expenses due and payable by the Company on or prior to the Closing Date shall have been paid;

 

(j)          The
Company Corporate Documents and the Subsidiary Corporate Documents, if any, shall be in full force and effect and no term or condition
thereof shall have been amended, waived or otherwise modified without the prior written consent of Purchaser;

 

(k)          There
shall have occurred no material adverse change in the business, condition (financial or otherwise), operations, performance, properties
or prospects of the Company or any Subsidiary since January 1, 2012;

 

    	21

    	 

    

 

(l)          There
shall exist no action, suit, investigation, litigation or proceeding pending or threatened in any court or before any arbitrator
or governmental instrumentality that challenges the validity of or purports to affect this Agreement or any other Transaction Agreement,
or other transaction contemplated hereby or thereby or that could reasonably be expected to have a Material Adverse Effect, or
any material adverse effect on the enforceability of the Transaction Agreements or the Securities or the rights of the holders
of the Securities or Purchaser hereunder;

 

(m)          Purchaser
shall have confirmed the receipt of the Convertible Bridge Notes to be issued, duly executed by the Company in the denominations
and registered in the name of Purchaser;

 

(n)          There
shall not have occurred any disruption or adverse change in the financial or capital markets generally, or in the market for the
Common Stock (including but not limited to any suspension or delisting), which Purchaser reasonably deems material in connection
with the purchase of the Securities;

 

(o)          Immediately
before and after the Closing Date, no Default or Event of Default shall have occurred and be continuing;

 

(p)          Purchaser
shall have received all other opinions, resolutions, certificates, instruments, agreements or other documents as they shall reasonably
request;

 

2             Conditions
to the Company’s Obligations. The obligations of the Company to issue and sell the Securities to Purchaser pursuant to
this Agreement are subject to the satisfaction, at or prior to any Closing Date, of the following conditions:

 

(a)          The
representations and warranties of Purchaser contained herein shall be true and correct in all material respects on the Closing
Date and Purchaser shall have performed and complied in all material respects with all agreements required by this Agreement to
be performed or complied with by Purchaser at or prior to the Closing Date;

 

(b)          The
issue and sale of the Securities by the Company shall not be prohibited by any applicable law, court order or governmental regulation;
and

 

(c)          Receipt
by the Company of duly executed counterparts of this Agreement signed by Purchaser.

 

ARTICLE 7. AFFIRMATIVE COVENANTS

 

The Company hereby agrees that, from and
after the date hereof for so long as any Convertible Bridge Notes remain outstanding and for the benefit of Purchaser:

 

1              Information. The Company will deliver, or make
available to each holder of the Convertible Bridge Notes:

 

(a)           within 30 days of the end of each fiscal quarter copies
of the Company’s balance sheet and income statements all as prepared in accordance with GAAP;

 

    	22

    	 

    

 

 

(b)          simultaneously with
the delivery of each item referred to in clause (a) above, a certificate from the chief financial officer of the Company stating
that no Default or Event of Default has occurred and is continuing, or, if as of the date of such delivery a Default shall have
occurred and be continuing, a certificate from the Company setting forth the details of such Default or Event of Default and the
action which the Company is taking or proposes to take with respect thereto;

 

(c)          within two (2) days
after any officer of the Company obtains knowledge of a Default or Event of Default, or that any Person has given any notice or
taken any action with respect to a claimed Default hereunder, a certificate of the chief financial officer of the Company setting
forth the details thereof and the action which the Company is taking or proposed to take with respect thereto;

 

(d)          promptly upon the mailing
thereof to the shareholders of the Company generally, copies of all financial statements, reports and proxy statements so mailed
and any other document generally distributed to shareholders;

 

(e)          at least two (2) Business
Days prior to the consummation of any Financing or other event requiring a repayment of the Convertible Bridge Notes under Section
3.4, notice thereof together with a summary of all material terms thereof and copies of all documents and instruments associated
therewith;

 

(f)          notice promptly upon
the occurrence of any event by which the Reserved Amount becomes less than the sum of (i) 1.5 times the maximum number of Conversion
Shares issuable pursuant to the Transaction Agreements; and

 

(g)          promptly following
the commencement thereof, notice and a description in reasonable detail of any litigation or proceeding to which the Company or
any Subsidiary is a party in which the amount involved is $75,000 or more and not covered by insurance or in which injunctive or
similar relief is sought.

 

2           Payment of Obligations. The Company will, and
will cause each Subsidiary to, pay and discharge, at or before maturity, all their respective material obligations, including,
without limitation, tax liabilities, except where the same may be contested in good faith by appropriate proceedings and will maintain,
in accordance with GAAP, appropriate reserves for the accrual of any of the same.

 

3           Maintenance of Property; Insurance. The Company
will, and will cause each Subsidiary to, keep all property useful and necessary in its business in good working order and condition,
ordinary wear and tear excepted. In addition, the Company and each Subsidiary will maintain insurance in at least such amounts
and against such risks as it has insured against as of the Closing Date.

 

    	23

    	 

    

 

4           Maintenance of Existence. The Company will,
and will cause each Subsidiary to, continue to engage in business of the same general type as now conducted by the Company and
such Subsidiaries, and will preserve, renew and keep in full force and effect its respective corporate existence and their respective
material rights, privileges and franchises necessary or desirable in the normal conduct of business.

 

5           Compliance with Laws . The Company will, and
will cause each Subsidiary to, comply, in all material respects, with all federal, state, municipal, local or foreign applicable
laws, ordinances, rules, regulations, municipal by-laws, codes and requirements of governmental authorities (including, without
limitation, Environmental Laws and ERISA and the rules and regulations thereunder) except (i) where compliance therewith is contested
in good faith by appropriate proceedings or (ii) where non-compliance therewith could not reasonably be expected, in the aggregate,
to have a material adverse effect on the business, condition (financial or otherwise), operations, performance, properties or prospects
of the Company or such Subsidiary.

 

6           Inspection of Property, Books and Records.
The Company will, and will cause each Subsidiary to, keep proper books of record and account in which full, true and correct entries
shall be made of all dealings and transactions in relation to their respective businesses and activities; and will permit, during
normal business hours, Purchaser’ Representative or an affiliate thereof, as representatives of Purchaser, to visit and inspect
any of their respective properties, upon reasonable prior notice, to examine and make abstracts from any of their respective books
and records and to discuss their respective affairs, finances and accounts with their respective executive officers and independent
public accountants (and by this provision the Company authorizes its independent public accountants to disclose and discuss with
Purchaser the affairs, finances and accounts of the Company and its Subsidiaries in the presence of a representative of the Company;
provided, however, that such discussions will not result in any unreasonable expense to the Company, without Company consent),
all at such reasonable times.

 

7           Investment Company Act. The Company will not
be or become an open-end investment trust, unit investment trust or face-amount certificate company that is or is required to be
registered under Section 8 of the Investment Company Act of 1940, as amended.

 

8           Use of Proceeds. The proceeds from the issuance
and sale of the Convertible Bridge Notes by the Company shall be used as working capital. None of the proceeds from the issuance
and sale of the Convertible Bridge Notes by the Company pursuant to this Agreement will be used directly or indirectly for the
purpose, whether immediate, incidental or ultimate, of purchasing or carrying any “margin stock” within the meaning
of Regulation G of the Board of Governors of the Federal Reserve System.

 

9           Compliance with Terms and Conditions of Material
Contracts. The Company will, and will cause each Subsidiary to, comply, in all respects, with all terms and conditions of all
material contracts to which it is subject.

 

10         Omitted

 

    	24

    	 

    

 

11           Transfer Agent Instructions. Upon receipt
of a Notice of Conversion the Company shall immediately direct the Company's transfer agent to issue certificates, registered in
the name of Purchaser or its nominee, for the Conversion Shares, in such amounts as specified from time to time by Purchaser to
the Company upon proper conversion of the Convertible Bridge Notes. Upon conversion of any Convertible Bridge Notes in accordance
with their terms, the Company will use its best lawful efforts to cause its transfer agent to, issue one or more certificates representing
shares of Common Stock in such name or names and in such denominations specified by a Purchaser in a Notice of Conversion. The
Company further warrants and agrees that no instructions other than these instructions have been or will be given to its transfer
agent. Nothing in this Section 7.11 shall affect in any way a Purchaser’s obligation to comply with all securities laws applicable
to Purchaser upon resale of such shares of Common Stock, including any prospectus delivery requirements.

 

12          Omitted .

 

13           Form D; Blue Sky Laws. The Company agrees
to file a “Form D” with respect to the Securities as required under Regulation D of the Securities Act and to provide
a copy thereof to Purchaser promptly after such filing. The Company shall, on or before the Closing Date, take such action as the
Company shall reasonably determine is necessary to qualify the Securities for sale to Purchaser at the Closing pursuant to this
Agreement under applicable securities or “blue sky” laws of the states of the United States (or to obtain an exemption
from such qualification), and shall provide evidence of any such action so taken to Purchaser on or prior to the Closing Date.

 

ARTICLE 8. NEGATIVE COVENANTS

 

The Company hereby agrees that after the
date hereof for so long as any Convertible Bridge Notes remain outstanding and for the benefit of Purchaser:

 

1            Limitations on Debt or Other Liabilities. Neither
the Company nor any Subsidiary will create, incur, assume or suffer to exist (at any time after the Closing Date and until repayment
or conversion of the Convertible Bridge Notes, after giving effect to the application of the proceeds of the issuance of the Securities)
(i) any Debt except (x) Debt incurred in a Permitted Financing, (y) Debt incurred in connection with equipment leases to
which the Company or its Subsidiaries are a party incurred in the ordinary course of business; and (z) Debt incurred in connection
with trade accounts payable, imbalances and refunds arising in the ordinary course of business and (ii) any equity securities (including
Derivative Securities) (other than those securities that are issuable (x) under or pursuant to stock option plans, warrants or
other rights programs that exist as of the date hereof, (z) in connection with the acquisition (including by merger) of a business
or of assets otherwise permitted under this Agreement), unless the Company complies with the mandatory prepayment terms of Section
3.4(b) hereof.

 

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2           Transactions with Affiliates. The Company and
each Subsidiary will not, directly or indirectly, pay any funds to or for the account of, make any investment (whether by acquisition
or stock or indebtedness, by loan, advance, transfer of property, guarantee or other agreement to pay, purchase or service, directly
or indirectly, and Debt, or otherwise) in, lease, sell, transfer or otherwise dispose of any assets, tangible or intangible, to,
or participate in, or effect any transaction in connection with any joint enterprise or other joint arrangement with, any Affiliate,
except, (1) pursuant to those agreements specifically identified in the Company’s public filings, or on Schedule 8.2
attached hereto (with a copy of such agreements annexed to such Schedule 8.2) and (2) on terms to the Company or such Subsidiary
no less favorable than terms that could be obtained by the Company or such Subsidiary from a Person that is not an Affiliate of
the Company upon negotiation at arms’ length, as determined in good faith by the Board of Directors of the Company; provided
that no determination of the Board of Directors shall be required with respect to any such transactions entered into in the ordinary
course of business.

 

3           Merger or Consolidation. The Company will not,
unless consented to by Purchaser, in a single transaction or a series of related transactions (i) consolidate with or merge with
or into any other Person, or (ii) permit any other Person to consolidate with or merge into it, unless the Company shall be the
survivor of such merger or consolidation and (x) immediately before and immediately after given effect to such transaction (including
any indebtedness incurred or anticipated to be incurred in connection with the transaction), no Default or Event of Default shall
have occurred and be continuing; and (y) the Company has delivered to Purchaser an Officer’s Certificate stating that such
consolidation, merger or transfer complies with this Agreement, and that all conditions precedent in this Agreement relating to
such transaction have been satisfied.

 

4           Limitation on Asset Sales. Neither the Company
nor any Subsidiary will consummate an Asset Sale of material assets of the Company or any Subsidiary without the prior written
consent of Purchaser, which consent shall not be unreasonably withheld. As used herein, “Asset Sale” means any sale,
lease, transfer or other disposition (or series of related sales, leases, transfers or dispositions) or sales of capital stock
of a Subsidiary (other than directors’ qualifying shares), property or other assets (each referred to for the purpose of
this definition as a “disposition”), including any disposition by means of a merger, consolidation or similar transaction
other than a disposition of property or assets at fair market value in the ordinary course of business.

 

5           Restrictions on Certain Amendments. Neither
the Company nor any Subsidiary will waive any provision of, amend, or suffer to be amended, any provision of such entity’s
existing Debt, any Company Corporate Document or Subsidiary Corporate Document if such amendment, in the Company’s reasonable
judgment, would materially adversely affect Purchaser or the holders of the Securities without the prior written consent of Purchaser.

 

6           Omitted.

 

7           Limitation on Stock Repurchases. Except as
otherwise set forth in the Convertible Bridge Notes, the Company shall not, without the written consent of the Majority Holders,
redeem, repurchase or otherwise acquire (whether for cash or in exchange for property or other securities or otherwise) any shares
of capital stock of the Company or any warrants, rights or options to purchase or acquire any such shares.

 

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ARTICLE 9. RESTRICTIVE LEGENDS

 

1           Restrictions on Transfer . From and after their
respective dates of issuance, none of the Securities shall be transferable except upon the conditions specified in this Article
IX, which conditions are intended to ensure compliance with the provisions of the Securities Act in respect of the Transfer of
any of such Securities or any interest therein. Each Purchaser will use its best efforts to cause any proposed transferee of any
Securities held by it to agree to take and hold such Securities subject to the provisions and upon the conditions specified in
this Article IX.

 

2           Legends. The Conversion Shares shall be considered
"legended" and/or "restricted" within the meaning of this Agreement and the Transaction Agreements.

 

3            Notice of Proposed Transfers . Prior
to any proposed Transfer of the Securities (other than a Transfer (i) registered or exempt from registration under the Securities
Act, (ii) to an affiliate of a Purchaser which is an “accredited investor” within the meaning of Rule 501(a) under
the Securities Act, provided that any such transferee shall agree to be bound by the terms of this Agreement, or (iii) to be made
in reliance on Rule 144 under the Securities Act), the holder thereof shall give written notice to the Company of such holder’s
intention to effect such Transfer, setting forth the manner and circumstances of the proposed Transfer, which shall be accompanied
by (a) an opinion of counsel reasonably acceptable to the Company, confirming that such transfer does not give rise to a violation
of the Securities Act, (B) representation letters in form and substance reasonably satisfactory to the Company to ensure compliance
with the provisions of the Securities Act and (C) letters in form and substance reasonably satisfactory to the Company from each
such transferee stating such transferee’s agreement to be bound by the terms of this Agreement. Such proposed Transfer may
be effected only if the Company shall have received such notice of transfer, opinion of counsel, representation letters and other
letters referred to in the immediately preceding sentence, whereupon the holder of such Securities shall be entitled to Transfer
such Securities in accordance with the terms of the notice delivered by the holder to the Company.

 

ARTICLE 10. ADDITIONAL AGREEMENTS
AMONG THE PARTIES

 

1           Liquidated Damages.

 

(a)          The Company shall cause
its transfer agent to, issue and deliver shares of Common Stock consistent with Section 7.11 hereof within five (5) Trading Days
of delivery of a Notice of Conversion (the “Deadline”) to Purchaser (or any party receiving Securities by transfer
from Purchaser) at the address of Purchaser set forth in the Notice of Conversion. The Company understands that a delay in the
issuance of such certificates after the Deadline could result in economic loss to Purchaser.

 

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(b)          Without in any way
limiting Purchaser’s right to pursue other remedies, including actual damages and/or equitable relief, the Company agrees
that if delivery of the Conversion Shares is more than one (1) Business Day after the Deadline (other than a failure due to the
circumstances described in Section 4.3 of the Convertible Bridge Notes, which failure shall be governed by such Section) the Company
shall pay to Purchaser, as liquidated damages and not as a penalty, $500 for each $100,000 of Convertible Bridge Notes then outstanding
per day in cash, for each of the first ten (10) days beyond the Deadline, and $1,000 for each $100,000 of Convertible Bridge Notes
then outstanding per day in cash for each day thereafter that the Company fails to deliver such Common Stock. Such cash amount
shall be paid to Purchaser by the last day of the calendar week following the week in which it has accrued or, at the option of
Purchaser (by written notice to the Company by the first day of the week following the week in which it has accrued), shall be
added to the principal amount of the Convertible Bridge Note (if then outstanding) payable to Purchaser, in which event interest
shall accrue thereon in accordance with the terms of the Convertible Bridge Notes and such additional principal amount shall be
convertible into Common Stock in accordance with the terms of the Convertible Bridge Notes.

 

2            Conversion Notice. The Company agrees that,
in addition to any other remedies which may be available to Purchaser, including, but not limited to, the remedies available under
Section 10.1, in the event the Company fails for any reason (other than as a result of actions taken by a Purchaser in breach of
this Agreement) to effect delivery to a Purchaser of certificates with or without restrictive legends as contemplated by Article
IX representing the shares of Common Stock on or prior to the Deadline after conversion of any Convertible Bridge Notes, Purchaser
will be entitled, if prior to the delivery of such certificates, to revoke the Notice of Conversion, by delivering a notice to
such effect to the Company whereupon the Company and Purchaser shall each be restored to their respective positions immediately
prior to delivery of such Notice of Conversion.

 

3            Conversion Limit. Notwithstanding
the conversion rights under the Convertible Bridge Notes, unless Purchaser delivers a waiver in accordance with the immediately
following sentence, in no event shall Purchaser be entitled to convert any portion of the Convertible Bridge Notes, in excess of
that portion of the Convertible Bridge Notes, as applicable, of which the sum of (i) the number of shares of Common Stock beneficially
owned by Purchaser and its Affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership
of the unconverted portion of the Convertible Bridge Note or other Derivative Securities convertible into or exchangeable for shares
of Common Stock which contain a limitation similar to that set forth in this Section 10.3), and (ii) the number of shares of Common
Stock issuable upon the conversion of the portion of the Convertible Bridge Note with respect to which this determination is being
made, would result in beneficial ownership by Purchaser and its Affiliates of more than 9.99% of the outstanding shares of Common
Stock. For purposes of Section 10.3(i) beneficial ownership shall be determined in accordance with Rule 13d-3 of the Exchange Act
and Regulations 13 D-G thereunder, except as otherwise provided in this Section 10.3. The foregoing limitation shall not apply
and shall be of no further force or effect (i) immediately preceding and upon the occurrence of any voluntary or mandatory redemption
or repayment transaction described herein or in the Convertible Bridge Notes, (ii) immediately preceding and upon any Sale Event,
(iii) on the Maturity Date or (iv) following the occurrence of any Event of Default which is not cured for a period of ten (10)
calendar days.

 

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4           Registration Rights.

 

(a)          In the event that the
S-1 Registration Statement filed on 7/3/12 is not declared effective within 90 days of the Closing Date, the Company shall grant
Purchaser registration rights covering the Conversion Shares (the “Registrable Securities”), and, subject to the limitations
imposed by the SEC in accordance with Rule 415, the Purchaser shall have the right to sell the Conversion Shares under a registration
statement including the Registrable Securities (the “Registration Statement”). The Company shall use its best efforts
to cause the Registration Statement to be declared effective by the Commission on the earlier of (i) 120 days of the Closing Date,
(ii) five days following the receipt of a “No Review” Letter from the Commission or (iii) the first day following the
day the Commission determines the Registration Statement eligible to be declared effective (the ‘Required Effectiveness date”).
The Company shall pay all expenses of registration (other than underwriting fees and discounts, if any, in respect of Registrable
Securities offered and sold under each registration statement by Purchaser).

 

(b)           If the Registration
Statement is not declared effective by the Commission by the Required Effectiveness Date, the Company shall ( a) Redeem the Convertible
Bridge Notes in Cash, or (b) pay to Purchaser, as liquidated damages and not as a penalty, an amount equal to 2% of the outstanding
principal amount of the Convertible Bridge Notes, prorated, for each 30 day period after the Required Effective Date the Registration
Statement is not declared effective by the Commission, which amount will be increased to 3% of the outstanding principal amount
of the Convertible Bridge Notes in the event that the Registration Statement is not declared effective by the Commission within
120 days of the Required Effective Date. In no event shall the liquidated damages exceed in aggregate 14%.

 

(c)          Any such liquidated
damages shall be paid in cash by the Company to Purchaser by wire transfer in immediately available funds on the last day of each
calendar week following the event requiring its payment.

 

(d)          If, following the declaration
of effectiveness of the Registration Statement or the Subsequent Registration Statement, such registration statement (or any prospectus
or supplemental prospectus contained therein) shall cease to be effective for any reason (including but not limited to the occurrence
of any event that results in any prospectus or supplemental prospectus containing an untrue statement of a material fact or omitting
a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances
under which they were made, not misleading), the Company fails to file required amendments to the Registration Statement or Subsequent
Registration Statement in order to allow the Purchaser to exercise its rights to receive unrestricted, unlegended, freely tradeable
shares of Common Stock, or if for any reason there are insufficient shares of such shares of Common Stock registered under the
then current Registration Statement or Subsequent Registration Statement to effect full conversion of the Convertible Bridge Notes
(a "Registration Default"), the Company shall immediately take all necessary steps to cause the Registration Statement
or Subsequent Registration Statement to be amended or supplemented so as to cure such Registration Default. Failure to cure a Registration
Default within fifteen (15) business days shall result in the Company paying to Purchaser liquidated damages at the rate of $5,000
per day from the date of such Registration Default until the Registration Default is cured.

 

    	29

    	 

    

 

		5	Omitted.

 

ARTICLE 11. ADJUSTMENT OF FIXED PRICE

 

1           Reorganization . The Conversion Price (the
“Fixed Prices”) shall be adjusted, as applicable, as hereafter provided.

 

2           Share Reorganization . If and whenever the
Company shall:

 

(i)          subdivide the outstanding
shares of Common Stock into a greater number of shares;

 

(ii)          consolidate the outstanding
shares of Common Stock into a smaller number of shares;

 

(iii)          issue Common Stock
or securities convertible into or exchangeable for shares of Common Stock as a stock dividend to all or substantially all the holders
of Common Stock; or

 

(iv)          make a distribution
on the outstanding Common Stock to all or substantially all the holders of Common Stock payable in Common Stock or securities convertible
into or exchangeable for Common Stock;

 

any of such events being herein called a “Share Reorganization,”
then in each such case the applicable Fixed Price shall be adjusted, effective immediately after the record date at which the holders
of Common Stock are determined for the purposes of the Share Reorganization or, if no record date is fixed, the effective date
of the Share Reorganization, by multiplying the applicable Fixed Price in effect on such record or effective date, as the case
may be, by a fraction of which:

 

(i)          the numerator shall be the number of shares
of Common Stock outstanding on such record or effective date (without giving effect to the transaction); and

 

    	30

    	 

    

 

(II)          the denominator shall be the number of
shares of Common Stock outstanding after giving effect to such Share Reorganization, including, in the case of a distribution of
securities convertible into or exchangeable for shares of Common Stock, the number of shares of Common Stock that would have been
outstanding if such securities had been converted into or exchanged for Common Stock on such record or effective date.

 

3           Rights Offering. If and whenever the Company
shall issue to all or substantially all the holders of Common Stock, rights, options or warrants under which such holders are entitled,
during a period expiring not more than 45 days after the record date of such issue, to subscribe for or purchase Common Stock (or
Derivative Securities), at a price per share (or, in the case of securities convertible into or exchangeable for Common Stock,
at an exchange or conversion price per share at the date of issue of such securities) of less than 95% of the Market Price of the
Common Stock on such record date (any such event being herein called a “Rights Offering”), then in each such case the
applicable Fixed Price shall be adjusted, effective immediately after the record date at which holders of Common Stock are determined
for the purposes of the Rights Offering, by multiplying the applicable Fixed Price in effect on such record date by a fraction
of which:

 

(i)          the numerator shall be the sum
of:

 

		(i)	the number of shares of Common Stock outstanding on such record date; and
	 	 	 
	 	(II)	a number obtained by dividing:
	 	 	 
	 	(A)	either,

 

(x)         the product of the total number of shares
of Common Stock so offered for subscription or purchase and the price at which such shares are so offered, or

 

(y)         the product of the maximum number of shares
of Common Stock into or for which the convertible or exchangeable securities so offered for subscription or purchase may be converted
or exchanged and the conversion or exchange price of such securities, or, as the case may be, by

 

(B)         the Market Price of the Common
Stock on such record date; and

 

(ii)         the denominator shall be the
sum of:

 

(i)         the number of shares
of Common Stock outstanding on such record date; and

 

(II)         the number of shares of Common Stock so
offered for subscription or purchase (or, in the case of Derivative Securities, the maximum number of shares of Common Stock for
or into which the securities so offered for subscription or purchase may be converted or exchanged).

 

    	31

    	 

    

 

To the extent that such rights, options or warrants are not
exercised prior to the expiry time thereof, the applicable Fixed Price shall be readjusted effective immediately after such expiry
time to the applicable Fixed Price which would then have been in effect upon the number of shares of Common Stock (or Derivative
Securities) actually delivered upon the exercise of such rights, options or warrants.

 

4                            Special Distribution. If and whenever the Company
shall issue or distribute to all or substantially all the holders of Common Stock:

(i)                        shares
of the Company of any class, other than Common Stock;

 

(ii)         rights, options or
warrants; or

 

(iii)        any other assets
(excluding cash dividends and equivalent dividends in shares paid in lieu of cash dividends in the ordinary course);

 

and if such issuance or distribution does not constitute a Share
Reorganization or a Rights Offering (any such event being herein called a “Special Distribution”), then in each such
case the applicable Fixed Price shall be adjusted, effective immediately after the record date at which the holders of Common Stock
are determined for purposes of the Special Distribution, by multiplying the applicable Fixed Price in effect on such record date
by a fraction of which:

 

(i)        the numerator shall
be the difference between:

 

(A)      the product of the
number of shares of Common Stock outstanding on such record date and the Market Price of the Common Stock on such date; and

 

(B)       the fair market value,
as determined by the Directors (whose determination shall be conclusive), to the holders of Common Stock of the shares, rights,
options, warrants, evidences of indebtedness or other assets issued or distributed in the Special Distribution (net of any consideration
paid therefor by the holders of Common Stock), and

 

(ii)        the denominator shall
be the product of the number of shares of Common Stock outstanding on such record date and the Market Price of the Common Stock
on such date.

 

5            Capital Reorganization. If and whenever there
shall occur:

  

(i)       a reclassification
or redesignation of the shares of Common Stock or any change of the shares of Common Stock into other shares, other than in a Share
Reorganization;

 

    	32

    	 

    

 

(ii)       a consolidation, merger
or amalgamation of the Company with, or into another body corporate; or

 

(iii)       the transfer of all
or substantially all of the assets of the Company to another body corporate;

 

(any such event being herein called a “Capital Reorganization”),
then in each such case the holder who exercises the right to convert Convertible Bridge Notes after the effective date of such
Capital Reorganization shall be entitled to receive and shall accept, upon the exercise of such right, in lieu of the number of
shares of Common Stock to which such holder was theretofore entitled upon the exercise of the conversion privilege, the aggregate
number of shares or other securities or property of the Company or of the body corporate resulting from such Capital Reorganization
that such holder would have been entitled to receive as a result of such Capital Reorganization if, on the effective date thereof,
such holders had been the holder of the number of shares of Common Stock to which such holder was theretofore entitled upon conversion;
provided, however, that no such Capital Reorganization shall be consummated in effect unless all necessary steps shall have been
taken so that such holders shall thereafter be entitled to receive such number of shares or other securities of the Company or
of the body corporate resulting from such Capital Reorganization, subject to adjustment thereafter in accordance with provisions
the same, as nearly as may be possible, as those contained above.

 

6                         Purchase Price Adjustments.
In case, except in the case of Permitted Financings, at any time and from time to time the Company shall issue any shares of Common
Stock or Derivative Securities convertible or exercisable for shares of Common Stock (the number of shares so issued, or issuable
upon conversion or exercise of such Derivative Securities, as applicable, being referred to as “Additional Shares of Common
Stock”) for consideration less than the then Market Price at the date of issuance of such shares of Common Stock or such
Derivative Securities, in each such case the Conversion Price shall, concurrently with such issuance, be adjusted by multiplying
the Conversion Price immediately prior to such event by a fraction: (i) the numerator of which shall be the number of shares of
Common Stock outstanding immediately prior to the issuance of such Additional Shares of Common Stock plus the number of shares
of Common Stock that the aggregate consideration received by the Company for the total number of such Additional Shares of Common
Stock so issued would purchase at the Market Price and (ii) the denominator of which shall be the number of shares of Common Stock
outstanding immediately prior to the issuance of Additional Shares of Common Stock plus the number of such Additional Shares of
Common Stock so issued or sold.

 

    	 

    	 

    

 

7Adjustment Rules . The following rules and procedures
shall be applicable to adjustments made in this Article XI:

 

(a)          no adjustment in the
applicable Fixed Price shall be required unless such adjustment would result in a change of at least 1% in the applicable Fixed
Price then in effect, provided, however, that any adjustments which, but for the provisions of this clause would otherwise have
been required to be made, shall be carried forward and taken into account in any subsequent adjustment;

 

(b)          if any event occurs
of the type contemplated by the adjustment provisions of this Article XI but not expressly provided for by such provisions, the
Company will give notice of such event as provided herein, and the Company’s board of directors will make an appropriate
adjustment in the Fixed Price so that the rights of the holders of the applicable Security shall not be diminished by such event;
and

 

(c)          if a dispute shall
at any time arise with respect to any adjustment of the applicable Fixed Price, such dispute shall be conclusively determined by
a firm of independent chartered accountants selected by the Purchaser and any such determination shall be binding upon the Company
and Purchaser.

 

8            Certificate as to Adjustment. The Company shall
from time to time promptly after the occurrence of any event which requires an adjustment in the applicable Fixed Price deliver
to Purchaser a certificate specifying the nature of the event requiring the adjustment, the amount of the adjustment necessitated
thereby, the applicable Fixed Price after giving effect to such adjustment and setting forth, in reasonable detail, the method
of calculation and the facts upon which such calculation is based.

 

9            Notice to Holders . If the Company shall fix
a record date for:

 

(a)          any Share Reorganization
(other than the subdivision of outstanding Common Stock into a greater number of shares or the consolidation of outstanding Common
Stock into a smaller number of shares),

 

(b)          any Rights Offering,

 

(c)          any Special Distribution,

 

(d)          any Capital Reorganization
(other than a reclassification or redesignation of the Common Stock into other shares),

 

(e)          Sale Event; or

 

(f)          any cash dividend,

 

the Company shall, not less than 10 days prior to such record
date or, if no record date is fixed, prior to the effective date of such event, give to Purchaser notice of the particulars of
the proposed event or the extent that such particulars have been determined at the time of giving the notice.

 

    	 

    	 

    

 

ARTICLE 13. EVENTS OF DEFAULT

 

1           Events of Default. If one or more of the following
events (each an “Event of Default”) shall have occurred and be continuing:

 

(a)          failure by the Company
to pay or repay when due, all or any part of the principal on any of the Convertible Bridge Notes (whether by virtue of the agreements
specified in this Agreement or the Convertible Bridge Notes);

 

(b)          failure by the Company
to pay (i) within five (5) Business Days of the due date thereof any interest on any Convertible Bridge Notes or (ii) within five
(5) Business Days following the delivery of notice to the Company of any fees or any other amount payable (not otherwise referred
to in (a) above or this clause (b)) by the Company under this Agreement or any other Transaction Agreement;

 

(c)          failure by the Company
to timely comply with the requirements of Section 7.11 or 10.1 hereof, which failure is not cured within five (5) Business Days
of such failure;

 

(d)          failure on the part
of the Company to observe or perform any covenant contained in Section 7.10 or Article VIII of this Agreement;

 

(e)          failure on the part
of the Company to observe or perform any covenant or agreement contained in any Transaction Agreement (other than those covered
by clauses (a), (b), (c), (d) or (e) above) for 30 days from the date of such occurrence;

 

(f)          the Registration Statement
shall not have been declared effective by the Commission by the Required Effectiveness Date, or such effectiveness shall not be
maintained for the Registration Maintenance Period, in each case which results in the Company incurring the Default Fee for a period
in excess of 10 days;

 

(g)          the Company or any
Subsidiary has commenced a voluntary case or other proceeding seeking liquidation, winding-up, reorganization or other relief with
respect to itself or its debts under any bankruptcy, insolvency, moratorium or other similar law now or hereafter in effect or
seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of it or any substantial part of
its property, or has consented to any such relief or to the appointment of or taking possession by any such official in an involuntary
case or other proceeding commenced against it, or has made a general assignment for the benefit of creditors, or has failed generally
to pay its debts as they become due, or has taken any corporate action to authorize any of the foregoing;

 

    	 

    	 

    

 

(h)          an involuntary case
or other proceeding has been commenced against the Company or any Subsidiary seeking liquidation, winding-up, reorganization or
other relief with respect to it or its debts under any bankruptcy, insolvency, moratorium or other similar law now or hereafter
in effect or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of it or any substantial
part of its property, and such involuntary case or other proceeding shall remain undismissed and unstayed for a period of 60 days,
or an order for relief has been entered against the Company or any Subsidiary under the federal bankruptcy laws as now or hereafter
in effect;

 

(i)          default in any provision
(including payment) or any agreement governing the terms of any Debt of the Company or any Subsidiary in excess of $50,000, which
has not been cured within any applicable period of grace associated therewith;

 

(j)          judgments or orders
for the payment of money which in the aggregate at any one time exceed $100,000 and are not covered by insurance have been rendered
against the Company or any Subsidiary by a court of competent jurisdiction and such judgments or orders shall continue unsatisfied
and unstayed for a period of 60 days; or

 

(k)          any representation,
warranty, certification or statement made by the Company in any Transaction Agreement or which is contained in any certificate,
document or financial or other statement furnished at any time under or in connection with any Transaction Agreement shall prove
to have been untrue in any material respect when made.

 

then, and in every such occurrence, Purchaser may, with respect
to an Event of Default specified in paragraphs (a) or (b), and the Majority Holders may, with respect to any other Event of Default,
by notice to the Company, declare the Convertible Bridge Notes to be, and the Convertible Bridge Notes shall thereon become immediately
due and payable; provided that in the case of any of the Events of Default specified in paragraph (j) or (k) above with
respect to the Company or any Subsidiary, then, without any notice to the Company or any other act by Purchaser, the entire amount
of the Convertible Bridge Notes shall become immediately due and payable, provided, further, if any Event of Default
has occurred and is continuing, and irrespective of whether any Convertible Bridge Note has been declared immediately due and payable
hereunder, any Purchaser of Convertible Bridge Notes may proceed to protect and enforce the rights of Purchaser by an action at
law, suit in equity or other appropriate proceeding, whether for the specific performance of any agreement contained herein or
in any Convertible Bridge Note, or for an injunction against a violation of any of the terms hereof or thereof, or in aid of the
exercise of any power granted hereby or thereby or by law or otherwise, and provided further, in the case of any
Event of Default, the amount declared due and payable on the Convertible Bridge Notes shall be the Formula Price thereof.

 

2           Powers and Remedies Cumulative. No right or remedy
herein conferred upon or reserved to Purchaser is intended to be exclusive of any other right or remedy, and every right and remedy
shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now hereafter
existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not
prevent the concurrent assertion or employment of any other appropriate right or remedy. Every power and remedy given by the Convertible
Bridge Notes or by law may be exercised from time to time, and as often as shall be deemed expedient, by Purchaser.

 

    	 

    	 

    

 

ARTICLE 14. MISCELLANEOUS

 

1           Notices. All notices, demands and other communications
to any party hereunder shall be in writing (including facsimile, email or similar writing) and shall be given to such party at
its address set forth on the signature pages hereof, or such other address as such party may hereafter specify for the purpose
to the other parties. Each such notice, demand or other communication shall be effective (i) if given by telecopy, when such telecopy
is transmitted to the telecopy number specified on the signature page hereof, (ii) if given by mail, four days after such communication
is deposited in the mail with first class postage prepaid, addressed as aforesaid or (iii) if given by any other means, when delivered
at the address specified in or pursuant to this Section.

 

2           No Waivers; Amendments.

 

(a)          No failure or delay
on the part of any party in exercising any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single
or partial exercise of any such right, power or remedy preclude any other or further exercise thereof or the exercise of any other
right, power or remedy.

 

(b)          Any provision of this
Agreement may be amended, supplemented or waived if, but only if, such amendment, supplement or waiver is in writing and is signed
by the Company and the Majority Holders; provided, that without the consent of each holder of any Convertible Bridge Note
affected thereby, an amendment or waiver may not (a) reduce the aggregate principal amount of Convertible Bridge Notes whose holders
must consent to an amendment or waiver, (b) reduce the rate or extend the time for payment of interest on any Convertible Bridge
Note, (c) reduce the principal amount of or extend the stated maturity of any Convertible Bridge Note or (d) make any Convertible
Bridge Note payable in money or property other than as stated in such Convertible Bridge Note. In determining whether the holders
of the requisite principal amount of Convertible Bridge Notes have concurred in any direction, consent, or waiver as provided in
any Transaction Agreement, Convertible Bridge Notes which are owned by the Company or any other obligor on or guarantor of the
Convertible Bridge Notes, or by any Person Controlling, Controlled by, or under common Control with any of the foregoing, shall
be disregarded and deemed not to be outstanding for the purpose of any such determination; and provided further that
no such amendment, supplement or waiver which affects the rights of Purchaser and their affiliates otherwise than solely in their
capacities as holders of Convertible Bridge Notes shall be effective with respect to them without their prior written consent.

 

    	 

    	 

    

 

3           Indemnification .

 

(c)          The Company agrees
to indemnify and hold harmless Purchaser, its Affiliates, and each Person, if any, who controls Purchaser, or any of its Affiliates,
within the meaning of the Securities Act or the Exchange Act (each, a “Controlling Person”), and the respective partners,
agents, employees, officers and Directors of Purchaser, their Affiliates and any such Controlling Person (each an “Indemnified
Party”) and collectively, the “Indemnified Parties”), from and against any and all losses, claims, damages, liabilities
and expenses (including, without limitation and as incurred, reasonable costs of investigating, preparing or defending any such
claim or action, whether or not such Indemnified Party is a party thereto, provided that the Company shall not be obligated to
advance such costs to any Indemnified Party other than Purchaser unless it has received from such Indemnified Party an undertaking
to repay to the Company the costs so advanced if it should be determined by final judgment of a court of competent jurisdiction
that such Indemnified Party was not entitled to indemnification hereunder with respect to such costs) which may be incurred by
such Indemnified Party in connection with any investigative, administrative or judicial proceeding brought or threatened that relates
to or arises out of, or is in connection with any activities contemplated by any Transaction Agreement or any other services rendered
in connection herewith; provided that the Company will not be responsible for any claims, liabilities, losses, damages or
expenses that are determined by final judgment of a court of competent jurisdiction to result from such Indemnified Party’s
gross negligence, willful misconduct or bad faith.

 

(d)          If any action shall
be brought against an Indemnified Party with respect to which indemnity may be sought against the Company under this Agreement,
such Indemnified Party shall promptly notify the Company in writing and the Company, at its option, may, assume the defense thereof,
including the employment of counsel reasonably satisfactory to such Indemnified Party and payment of all reasonable fees and expenses.
The failure to so notify the Company shall not affect any obligations the Company may have to such Indemnified Party under this
Agreement or otherwise unless the Company is materially adversely affected by such failure. Such Indemnified Party shall have the
right to employ separate counsel in such action and participate in the defense thereof, but the fees and expenses of such counsel
shall be at the expense of such Indemnified Party, unless (i) the Company has failed to assume the defense and employ counsel or
(ii) the named parties to any such action (including any impleaded parties) include such Indemnified Party and the Company, and
such Indemnified Party shall have been advised by counsel that there may be one or more legal defenses available to it which are
different from or additional to those available to the Company, in which case, if such Indemnified Party notifies the Company in
writing that it elects to employ separate counsel at the expense of the Company, the Company shall not have the right to assume
the defense of such action or proceeding on behalf of such Indemnified Party, provided, however, that the Company
shall not, in connection with any one such action or proceeding or separate but substantially similar or related actions or proceedings
in the same jurisdiction arising out of the same general allegations or circumstances, be responsible hereunder for the reasonable
fees and expenses of more than one such firm of separate counsel, in addition to any local counsel, which counsel shall be designated
by Purchaser. The Company shall not be liable for any settlement of any such action effected without the written consent of the
Company (which shall not be unreasonably withheld) and the Company agrees to indemnify and hold harmless each Indemnified Party
from and against any loss or liability by reason of settlement of any action effected with the consent of the Company. In addition,
the Company will not, without the prior written consent of Purchaser, settle or compromise or consent to the entry of any judgment
in or otherwise seek to terminate any pending or threatened action, claim, suit or proceeding in respect to which indemnification
or contribution may be sought hereunder (whether or not any Indemnified Party is a party thereto) unless such settlement, compromise,
consent or termination includes an express unconditional release of Purchaser and the other Indemnified Parties, satisfactory in
form and substance to Purchaser, from all liability arising out of such action, claim, suit or proceeding.

 

    	 

    	 

    

 

(e)          If for any reason the
foregoing indemnity is unavailable (otherwise than pursuant to the express terms of such indemnity) to an Indemnified Party or
insufficient to hold an Indemnified Party harmless, then in lieu of indemnifying such Indemnified Party, the Company shall contribute
to the amount paid or payable by such Indemnified Party as a result of such claims, liabilities, losses, damages, or expenses (i)
in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and by Purchaser
on the other from the transactions contemplated by this Agreement or (ii) if the allocation provided by clause (i) is not permitted
under applicable law, in such proportion as is appropriate to reflect not only the relative benefits received by the Company on
the one hand and Purchaser on the other, but also the relative fault of the Company and Purchaser as well as any other relevant
equitable considerations. Notwithstanding the provisions of this Section 13.3, the aggregate contribution of all Indemnified Parties
shall not exceed the amount of interest and fees actually received by Purchaser pursuant to this Agreement. It is hereby further
agreed that the relative benefits to the Company on the one hand and Purchaser on the other with respect to the transactions contemplated
hereby shall be determined by reference to, among other things, whether any untrue or alleged untrue statement of material fact
or the omission or alleged omission to state a material fact related to information supplied by the Company or by Purchaser and
the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.
No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled
to contribution from any Person who was not guilty of such fraudulent misrepresentation.

 

(f)          The indemnification,
contribution and expense reimbursement obligations set forth in this Section 13.3 (i) shall be in addition to any liability the
Company may have to any Indemnified Party at common law or otherwise; (ii) shall survive the termination of this Agreement and
the other Transaction Agreements and the payment in full of the Convertible Bridge Notes and (iii) shall remain operative and in
full force and effect regardless of any investigation made by or on behalf of Purchaser or any other Indemnified Party.

 

    	 

    	 

    

 

4           Expenses: Documentary Taxes. The Company shall
be responsible for __________ costs and expenses in connection with the negotiation and preparation of the Transaction Agreements,
relevant due diligence, and fees and disbursements of legal counsel. Notwithstanding the forgoing, the Company agrees to pay any
and all stamp, transfer and other similar taxes, assessments or charges payable in connection with the execution and delivery of
any Transaction Agreement or the issuance of the Securities to Purchaser, excluding their assigns.

 

5           Payment. The Company agrees that, so long as Purchaser
shall own any Convertible Bridge Notes purchased by it from the Company hereunder, the Company will make payments to Purchaser
of all amounts due thereon by wire transfer by 4:00 P.M. (E.S.T.).

 

6           Successors and Assigns. This Agreement shall
be binding upon the Company and upon Purchaser and its respective successors and assigns; provided that the Company shall
not assign or otherwise transfer its rights or obligations under this Agreement to any other Person without the prior written consent
of the Majority Holders. All provisions hereunder purporting to give rights to Purchaser and its affiliates or to holders of Securities
are for the express benefit of such Persons and their successors and assigns.

 

7           Brokers. Except for a fee payable to Moody
Capital solutions in the amount of $___________, the Company represents and warrants that it has not employed any broker, finder,
financial advisor or investment banker who would be entitled to any brokerage, finder’s or other fee or commission payable
by the Company or Purchaser in connection with the sale of the Securities.

 

8           Georgia Law; Submission to Jurisdiction; Waiver
of Jury Trial; Appointment of Agent . THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE
STATE OF GEORGIA. EACH PARTY HERETO HEREBY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE NORTHERN
DISTRICT OF GEORGIA AND OF ANY FEDERAL DISTRICT COURT SITTING IN ATLANTA, GEORGIA FOR PURPOSES OF ALL LEGAL PROCEEDINGS ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH PARTY HERETO IRREVOCABLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH PROCEEDING BROUGHT
IN SUCH A COURT AND ANY CLAIM THAT ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. EACH
PARTY TO THIS AGREEMENT IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS IN ANY SUCH PROCEEDING BY THE MAILING OF COPIES THEREOF
BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO SUCH PARTY AT ITS ADDRESS SET FORTH HEREIN. NOTHING HEREIN SHALL AFFECT THE
RIGHT OF ANY PARTY TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW. EACH PARTY WAIVES ITS RIGHT TO A TRIAL BY JURY.

 

    	 

    	 

    

 

9                    Entire Agreement. This Agreement, the Exhibits
or Schedules hereto, which include the Convertible Bridge Note, set forth the entire agreement and understanding of the parties
relating to the subject matter hereof and supersedes all prior and contemporaneous agreements, negotiations and understandings
between the parties, both oral and written relating to the subject matter hereof. The terms and conditions of all Exhibits and
Schedules to this Agreement are incorporated herein by this reference and shall constitute part of this Agreement as is fully set
forth herein.

 

10                   Survival; Severability. The representations,
warranties, covenants and agreements of the parties hereto shall survive the Closing hereunder. In the event that any provision
of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement
shall continue in full force and effect without said provision; provided that such severability shall be ineffective if it materially
changes the economic benefit of this Agreement to any party.

 

11                   Title and Subtitles. The titles and subtitles
used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.

 

12                   Reporting Entity for the Common Stock. The
reporting entity relied upon for the determination of the trading price or trading volume of the Common Stock on any given Trading
Day for the purposes of this Agreement and all Exhibits shall be Bloomberg, L.P. or any successor thereto. The written mutual consent
of the Purchaser and the Company shall be required to employ any other reporting entity.

  

13                    Publicity. The Company and the Purchaser shall
consult with each other in issuing any press releases or otherwise making public statements with respect to the transactions contemplated
hereby and no party shall issue any such press release or otherwise make any such public statement without the prior written consent
of the other parties, which consent shall not be unreasonably withheld or delayed, except that no prior consent shall be required
if such disclosure is required by law, in which such case the disclosing party shall provide the other parties with prior notice
of such public statement. Notwithstanding the foregoing, the Company shall not publicly disclose the name of Purchaser without
the prior written consent of Purchaser, except to the extent required by law, in which case the Company shall provide Purchaser
with prior written notice of such public disclosure.

 

[Signature page follows]

 

    	 

    	 

    

 

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

 

	 	3DICON Corporation
	 	 	 
	 	By:	 
	 	Name:	Mark Willner
	 	Title:	CEO
	 	 	 
	 	Address:	6804 South Canton Avenue, Suite 150
	 	 	Tulsa OK 74136

 

	 	 	 

 

	 	By:	 
	 	Name:
	 	 
	 	 
	 	Address:

  

Securities Purchase Agreement

 

    	 

    	 

    

 

Exhibit E

 

INVESTOR QUESTIONNAIRE

 

Instructions: Check all boxes below
which correctly describe you.

 

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

 

    	 

    	 

    
 

Check all boxes below which correctly describe you.

 

With respect to this investment in the Shares, your:

 

	Investment Objectives: 	 	£ 
    Aggressive Growth	 	£ 
    Speculation	 
	 	 	 	 	 	 
	Risk Tolerance: 	 	£ 
    Low Risk 	 	£     Moderate Risk 	£
    High Risk

  

Are you associated with a FINRA Member Firm?  o
Yes  o No

 

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

 

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

 

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

 

	 	 	 
	Name of Purchaser  [please print]	 	Name of Co-Purchaser  [please print]
	 	 	 
	 	 	 
	Signature of Purchaser (Entities please	 	Signature of Co-Purchaser
	provide signature of Purchaser’s duly	 	 
	authorized signatory.)	 	 
	 	 	 
	 	 	 
	Name of Signatory (Entities only)	 	 
	 	 	 
	 	 	 
	Title of Signatory (Entities only)	 	 

 

[SIGNATURE PAGE TO INVESTOR QUESTIONAIRRE
AGREEMENT – SECURITEIS PURCHASE AGREEMENT DATED AUGUST 27, 2012]EXHIBIT 10.1

 

PROMISSORY NOTE SECOND EXTENSION AGREEMENT

 

 

This Promissory Note Second Extension
Agreement, hereinafter referred to as “Second Extension Agreement”, entered into this 27th day of August, 2012, by
and among GLOBALWISE INVESTMENTS, INC. hereinafter called “Maker” and Ramon M. Shealy, hereinafter called “Lender”.

 

WHEREAS, Maker and
Lender have entered into a Promissory Note dated March 29, 2012 for the amount of Two Hundred Thirty Eight Thousand Dollars ($238,000),
hereinafter referred to as the “Note”. Said Note was originally due one ninety days from its issuance. An extension
of said Note was executed on June 27, 2012 for an additional sixty days to August 27, 2012.

 

WHEREAS, Maker and
Lender desire to enter into this Second Extension Agreement in order to extend the due date of the Note an additional sixty days
to October 25, 2012.

 

NOW, THEREFORE, it
is duly agreed by both Maker and Lender to extend the due date of the Note to October 25, 2012.

 

All other provisions
of the original Promissory Note shall prevail unless otherwise written.

 

IN WITNESS WHEREOF,
the undersigned Maker and Lender have duly executed this Second Extension Agreement extending the due date of the Note as of the
day and year above first written.

  

	 	GLOBALWISE INVESTMENTS, INC.
	 	 
	 	 
	 	By: /s/ Willaim J. Santiago 
	 	Name: William J. Santiago
	 	Title: President and CEO
	 	 
	 	 
	 	RAMON M. SHEALY
	 	 
	 	 
	 	By: /s/ Ramon M. Shealy
	 	Name: Ramon M. Shealy

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