Document:

SECURITIES PURCHASE AGREEMENT

 

SECURITIES
PURCHASE AGREEMENT (this “Agreement”), dated as of September 20, 2012, by and between Nyxio Technologies Corp. a Nevada corporation, with executive offices located at 2156 NE Broadway,
Portland, Oregon 97232 (the “Company”) and Continental Equities LLC, a New York limited liability company, with its
address at 888 7th Avenue, New York, NY 10106 (the “Investor”).

 

WHEREAS:

 

A.The
Company and the Investor are executing and delivering this Agreement in reliance upon the exemption from securities registration
afforded by the rules and regulations as promulgated by the United States Securities and Exchange Commission (the “SEC”)
under the Securities Act of 1933, as amended (the “1933 Act”); and

 

B.Investor
desires to purchase and the Company desires to issue and sell, upon the terms and conditions set forth in this Agreement an 8%
convertible note of the Company, in the form attached hereto as Exhibit “A”, in the principal amount of Thirty-Five
Thousand Dollars ($35,000.00) (together with any note(s) issued in replacement thereof or as a dividend thereon or otherwise with
respect thereto in accordance with the terms thereof, (the “Note”), convertible into shares of common stock,
par value $0.001 per share, of the Company (the “Common Stock”), upon the terms and subject to the limitations
and conditions set forth in such Note, (the Note, the “Closing Securities” or the “Securities”).

 

C.Contemporaneous
with the sale of the Closing Securities, the parties shall execute and deliver a Registration Rights Agreement in the form attached
hereto as Exhibit “B” (the “Registration Rights Agreement”), pursuant to which the Company
will agree to provide the Investor with certain registration rights under the Act, and the rules and regulations promulgated thereunder,
and applicable state securities laws.

 

Capitalized
terms used and not otherwise defined herein shall have the meanings given such terms in the Note.

 

NOW THEREFORE, the Company
and the Investor hereby agree as follows:

 

1. PURCHASE AND SALE
OF NOTE.

 

a. Purchase
of Closing Securities. On the Closing Date (as defined below), the Company shall issue and sell to the Investor and the
Investor agrees to purchase from the Company, the Closing Securities in exchange for a cash payment by Investor of Thirty-Five
Thousand Dollars ($35,000.00).

    	 

    	 

    

 

b. Form
of Payment. On the Closing Date (as defined below), (i) the Investor shall pay the purchase price for the Closing Securities
to be issued and sold to it at the Closing (as defined below) (the “Purchase Price”) by wire transfer of immediately
available funds to the Company, in accordance with the Company’s written wiring instructions, against delivery of the Closing
Securities in the principal amount equal to the Purchase Price, and (ii) the Company shall deliver this Agreement, the Closing
Securities and the Registration Rights Agreement duly executed on behalf of the Company, to the Investor, against delivery of
such Purchase Price.

 

c.
 Closing Date. Subject to the satisfaction (or written waiver) of the conditions thereto set forth in Section 6 and
Section 7 below, the date and time of the issuance and sale of the Note pursuant to this Agreement (the “Closing Date”)
shall be 12:00 noon, Eastern Standard Time on September 20, 2012, or such other mutually agreed upon time. The closing of the
transactions contemplated by this Agreement (the “Closing”) shall occur on the Closing Date at such location
as may be agreed to by the parties.

 

2. INVESTOR’S
REPRESENTATIONS AND WARRANTIES. The Investor represents and warrants to the Company that:

 

a. Investment
Purpose. As of the date hereof, the Investor is purchasing the Closing Securities and the shares of Common Stock issuable
upon conversion or otherwise pursuant to the Note (including, without limitation, such additional shares of Common Stock, if any,
as are issuable (i) on account of interest on the Note, (ii) as a result of the events described in Sections 1.3 and 1.4(g) of
the Notes or (iii) in payment of the Standard Liquidated Damages Amount (as defined in Section 2(f) below) pursuant to this Agreement,
such shares of Common Stock being collectively referred to herein as the “Conversion Shares” for its own account
and not with a present view towards the public sale or distribution thereof, except pursuant to sales registered or exempted from
registration under the 1933 Act; provided, however, that by making the representations herein, the Investor does
not agree to hold any of the Securities for any minimum or other specific term and reserves the right to dispose of the Securities
at any time in accordance with or pursuant to a registration statement or an exemption under the 1933 Act.

 

b.
Accredited Investor Status. The Investor is an “accredited investor” as that term is defined in Rule 501(a)
of Regulation D (an “Accredited Investor”).

 

c. Reliance
on Exemptions. The Investor understands that the Securities are being offered and sold to it in reliance upon specific
exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying
upon the truth and accuracy of, and the Investor’s compliance with, the representations, warranties, agreements, acknowledgments
and understandings of the Investor set forth herein in order to determine the availability of such exemptions and the eligibility
of the Investor to acquire the Securities.

 

d. Information.
The Investor and its advisors, if any, have been, and for so long as the Closing Securities remain outstanding will continue to
be, furnished with all materials relating to the business, finances and operations of the Company and materials relating to the
offer and sale of the Closing Securities which have been requested by the Investor or its advisors. The Investor and its advisors,
if any, have been, and for so long as the Closing Securities remain outstanding will continue to be, afforded the opportunity
to ask questions of the Company. Notwithstanding the foregoing, the Company has not disclosed to the Investor any material nonpublic
information and will not disclose such information unless such information is disclosed to the public prior to or promptly following
such disclosure to the Investor. Neither such inquiries nor any other due diligence investigation conducted by Investor or any
of its advisors or representatives shall modify, amend or affect Investor’s right to rely on the Company’s representations
and warranties contained in Section 3 below. The Investor understands that its investment in the Securities involves a significant
degree of risk. The Investor is not aware of any facts that may constitute a breach of any of the Company’s representations
and warranties made herein.

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e.
 Governmental Review.  The Investor understands that no United States federal or state agency or any other government
or governmental agency has passed upon or made any recommendation or endorsement of the Securities.

 

f.Transfer
or Re-sale. The Investor understands that (i) the sale or re- sale of the Securities has not been and is not being registered
under the 1933 Act or any applicable state securities laws, and the Securities may not be transferred unless (a) the Securities
are sold pursuant to an effective registration statement under the 1933 Act, (b) the Company shall receive an opinion of counsel
that shall be in form, substance and scope customary for opinions of counsel in comparable transactions to the effect that the
Securities to be sold or transferred may be sold or transferred pursuant to an exemption from such registration, which opinion
shall be accepted by the Company, (c) the Securities are sold or transferred to an “affiliate” (as defined in Rule
144 promulgated under the 1933 Act (or a successor rule) (“Rule 144”)) of the Investor who agrees to sell or
otherwise transfer the Securities only in accordance with this Section 2(f) and who is an Accredited Investor, (d) the Securities
are sold pursuant to Rule 144, or (e) the Securities are sold pursuant to Regulation S under the 1933 Act (or a successor rule)
(“Regulation S”), and the Company shall have received an opinion of counsel that shall be in form, substance
and scope customary for opinions of counsel in corporate transactions, which opinion shall be accepted by the Company; (ii) any
sale of such Securities made in reliance on Rule 144 may be made only in accordance with the terms of said Rule and further, if
said Rule is not applicable, any re-sale of such Securities under circumstances in which the seller (or the person through whom
the sale is made) may be deemed to be an underwriter (as that term is defined in the 1933 Act) may require compliance with some
other exemption under the 1933 Act or the rules and regulations of the SEC thereunder; and (iii) neither the Company nor any other
person is under any obligation to register such Securities under the 1933 Act or any state securities laws or to comply with the
terms and conditions of any exemption thereunder. Notwithstanding the foregoing or anything else contained herein to the contrary,
the Securities may be pledged as collateral in connection with a bona fide margin account or other lending arrangement.

 

g. Legends.
The Investor understands that the Securities, until such time as the Conversion Shares have been registered under the 1933 Act
or otherwise may be sold pursuant to Rule 144 or Regulation S without any restriction as to the number of securities as of a particular
date that can then be immediately sold, the Conversion Shares may bear a restrictive legend in substantially the following form
(and a stop-transfer order may be placed against transfer of the certificates for such Securities):

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“The securities represented
by this certificate have not been registered under the Securities Act of 1933, as amended. The securities may not be sold, transferred
or assigned in the absence of an effective registration statement for the securities under said Act, or an opinion of counsel,
in form, substance and scope customary for opinions of counsel in comparable transactions, that registration is not required under
said Act or unless sold pursuant to Rule 144 or Regulation S under said Act.”

 

The legend
set forth above shall be removed and the Company shall issue a certificate without such legend to the holder of any Security upon
which it is stamped, if, unless otherwise required by applicable state securities laws, (a) such Security is registered for sale
under an effective registration statement filed under the 1933 Act or otherwise may be sold pursuant to Rule 144 or Regulation
S without any restriction as to the number of securities as of a particular date that can then be immediately sold, or (b) the
Company is provided with an opinion of counsel, in form, substance and scope customary for opinions of counsel in comparable transactions,
to the effect that a public sale or transfer of such Security may be made without registration under the 1933 Act, which opinion
shall be accepted by the Company so that the sale or transfer is effected. The Investor agrees to sell all Securities, including
those represented by a certificate(s) from which the legend has been removed, in compliance with applicable prospectus delivery
requirements, in any.

 

h. Authorization;
Enforcement. This Agreement has been duly and validly authorized. This Agreement has been duly executed and delivered
on behalf of the Investor, and this Agreement constitutes a valid and binding agreement of the Investor enforceable in accordance
with its terms.

 

i. Residency.
The Investor is a resident of the jurisdiction set forth in Section 8(f) herein.

 

3.REPRESENTATIONS
AND WARRANTIES OF THE COMPANY. The Company represents and warrants to the Investor that:

 

a. Organization
and Qualification. The Company and each of its Subsidiaries (as defined below), if any, is a corporation duly organized,
validly existing and in good standing under the laws of the jurisdiction in which it is incorporated, with full power and authority
(corporate and other) to own, lease, use and operate its properties and to carry on its business as and where now owned, leased,
used, operated and conducted.  Schedule 3(a) sets forth a list of all of the Subsidiaries of the Company and the jurisdiction
in which each is incorporated. The Company and each of its Subsidiaries is duly qualified as a foreign corporation to do business
and is in good standing in every jurisdiction in which its ownership or use of property or the nature of the business conducted
by it makes such qualification necessary except where the failure to be so qualified or in good standing would not have a Material
Adverse Effect. “Material Adverse Effect” means any material and adverse effect on the business, operations,
assets, financial condition or prospects of the Company and the Subsidiaries, if any, taken as a whole, or on the transactions
contemplated hereby or by the agreements or instruments to be entered into in connection herewith. “Subsidiaries”
means any corporation or other organization, whether incorporated or unincorporated, in which the Company owns, directly or indirectly,
any equity or other ownership interest.

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b. Authorization;
Enforcement. (i) The Company has all requisite corporate power and authority to enter into and perform this Agreement
and the Securities to consummate the transactions contemplated hereby and thereby and to issue the Securities, in accordance with
the terms hereof and thereof, (ii) the execution and delivery of this Agreement and the Note and Warrants by the Company and the
consummation by it of the transactions contemplated hereby and thereby (including without limitation, the issuance of the Note
and Warrants, and the issuance and reservation for issuance of the Conversion Shares issuable upon conversion or exercise thereof)
have been duly authorized by the Company’s Board of Directors and no further consent or authorization of the Company, its
Board of Directors, or its shareholders is required, (iii) this Agreement has been duly executed and delivered by the Company
by its authorized representative, and such authorized representative is the true and official representative with authority to
sign this Agreement and the other documents executed in connection herewith and bind the Company accordingly, and (iv) this Agreement
constitutes, and upon execution and delivery by the Company of the Note, Warrants and Registration Rights Agreement, each of such
instruments will constitute, a legal, valid and binding obligation of the Company enforceable against the Company in accordance
with its terms.

 

c.
 Capitalization. As of the date hereof, the authorized capital stock of the Company consists of (i) [121,212,122] shares
of Common Stock, of which [53,940,690] shares are issued and outstanding, [2,000,000] shares are reserved for issuance pursuant
to the Company’s stock option plans, [0] shares are reserved for issuance pursuant to securities (other than the Note and
Warrant) exercisable for, or convertible into or exchangeable for shares of Common Stock and, [15,000,000] shares are reserved
for issuance upon conversion of the Notes and (subject to adjustment pursuant to the Company’s covenant set forth in Section
4(h) below); and (ii) [1,500]  shares of preferred stock of which [0] shares are issued and outstanding. All of such outstanding
shares of capital stock are, or upon issuance will be, duly authorized, validly issued, fully paid and nonassessable.  [0] shares
of capital stock of the Company are subject to preemptive rights or any other similar rights of the shareholders of the Company
or any liens or encumbrances imposed through the actions or failure to act of the Company. Except as disclosed in Schedule
3(c), as of the effective date of this Agreement, (i) there are no outstanding options, warrants, scrip, rights to subscribe
for, puts, calls, rights of first refusal, agreements, understandings, claims or other commitments or rights of any character
whatsoever relating to, or securities or rights convertible into or exchangeable for any shares of capital stock of the Company
or any of its Subsidiaries, or arrangements by which the Company or any of its Subsidiaries is or may become bound to issue additional
shares of capital stock of the Company or any of its Subsidiaries, (ii) there are no agreements or arrangements under which the
Company or any of its Subsidiaries is obligated to register the sale of any of its or their securities under the 1933 Act and
(iii) there are no anti-dilution or price adjustment provisions contained in any security issued by the Company (or in any agreement
providing rights to security holders) that will be triggered by the issuance of the Notes. The Company has furnished to the Investor
true and correct copies of the Company’s Certificate of Incorporation as in effect on the date hereof (“Certificate
of Incorporation”), the Company’s By-laws, as in effect on the date hereof (the “By-laws”),
and the terms of all securities convertible into or exercisable for Common Stock of the Company and the material rights of the
holders thereof in respect thereto. The Company shall provide the Investor with a written update of this representation signed
by the Company’s Chief Executive or Chief Financial Officer on behalf of the Company as of the Closing Date.

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d. Issuance
of Shares. The Conversion Shares are duly authorized and reserved for issuance and, upon conversion of the Note and exercise
of the Warrants and payment of the exercise price, in accordance with their respective terms, will be validly issued, fully paid
and non-assessable, and free from all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be
subject to preemptive rights or other similar rights of shareholders of the Company and will not impose personal liability upon
the holder thereof.

 

e.
 Acknowledgment of Dilution. The Company understands and acknowledges the potentially dilutive effect to the Common
Stock upon the issuance of the Conversion Shares upon conversion of the Note or exercise of the Warrants respectively. The Company
further acknowledges that its obligation to issue Conversion Shares upon conversion of the Note or exercise of the Warrants in
accordance with this Agreement, the Note and Warrants is absolute and unconditional regardless of the dilutive effect that such
issuance may have on the ownership interests of other shareholders of the Company.

 

f. No
Conflicts. The execution, delivery and performance of this Agreement, the Registration Rights Agreement, Warrants and
the Note by the Company and the consummation by the Company of the transactions contemplated hereby and thereby (including, without
limitation, the issuance and reservation for issuance of the Conversion Shares ) will not (i) conflict with or result in a violation
of any provision of the Certificate of Incorporation or By- laws or (ii) violate or conflict with, or result in a breach of any
provision of, or constitute a default (or an event which with notice or lapse of time or both could become a default) under, or
give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture, patent, patent
license or instrument to which the Company or any of its Subsidiaries is a party, or (iii) result in a violation of any law, rule,
regulation, order, judgment or decree (including federal and state securities laws and regulations and regulations of any self-
regulatory organizations to which the Company or its securities are subject) applicable to the Company or any of its Subsidiaries
or by which any property or asset of the Company or any of its Subsidiaries is bound or affected (except for such conflicts, defaults,
terminations, amendments, accelerations, cancellations and violations as would not, individually or in the aggregate, have a Material
Adverse Effect). Neither the Company nor any of its Subsidiaries is in violation of its Certificate of Incorporation, By-laws
or other organizational documents and neither the Company nor any of its Subsidiaries is in default (and no event has occurred
which with notice or lapse of time or both could put the Company or any of its Subsidiaries in default) under, and neither the
Company nor any of its Subsidiaries has taken any action or failed to take any action that would give to others any rights of
termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company or any of
its Subsidiaries is a party or by which any property or assets of the Company or any of its Subsidiaries is bound or affected,
except for possible defaults as would not, individually or in the aggregate, have a Material Adverse Effect. The businesses of
the Company and its Subsidiaries, if any, are not being conducted, and shall not be conducted so long as a Investor owns any of
the Securities, in violation of any law, ordinance or regulation of any governmental entity. Except as specifically contemplated
by this Agreement and as required under the 1933 Act and any applicable state securities laws, the Company is not required to
obtain any consent, authorization or order of, or make any filing or registration with, any court, governmental agency, regulatory
agency, self regulatory organization or stock market or any third party in order for it to execute, deliver or perform any of
its obligations under this Agreement, the Note or the Warrant in accordance with the terms hereof or thereof or to issue and sell
the Note and Warrants  in accordance with the terms hereof and to issue the Conversion Shares upon conversion of the Note, or
exercise of the Warrants. Except as disclosed in Schedule 3(f), all consents, authorizations, orders, filings and registrations
which the Company is required to obtain pursuant to the preceding sentence have been obtained or effected on or prior to the date
hereof. The Company is not in violation of the quotation requirements of the Over-the-Counter Bulletin Board (the “OTCBB”)
and does not reasonably anticipate that the Common Stock will be delisted by the OTCBB in the foreseeable future.  The Company
and its Subsidiaries are unaware of any facts or circumstances which might give rise to any of the foregoing.

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g. SEC
Documents; Financial Statements. The Company is subject to the reporting requirements of the Securities Exchange Act of
1934, as amended (the “1934 Act”) and the Company has timely filed all reports, schedules, forms, statements
and other documents required to be filed by it with the SEC pursuant to the 1934 Act (all of the foregoing filed prior to the
date hereof and all exhibits included therein and financial statements and schedules thereto and documents (other than exhibits
to such documents) incorporated by reference therein, being hereinafter referred to herein as the “SEC Documents”).
The Company has delivered to the Investor true and complete copies of the SEC Documents, except for such exhibits and incorporated
documents.  As of their respective dates, the SEC Documents complied in all material respects with the requirements of the 1934
Act and the rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents,
at the time they were filed with the SEC, contained any untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which
they were made, not misleading. None of the statements made in any such SEC Documents is, or has been, required to be amended
or updated under applicable law (except for such statements as have been amended or updated in subsequent filings prior the date
hereof). As of their respective dates, the financial statements of the Company included in the SEC Documents complied as to form
in all material respects with applicable accounting requirements and the published rules and regulations of the SEC with respect
thereto. Such financial statements have been prepared in accordance with United States generally accepted accounting principles,
consistently applied, during the periods involved (except (i) as may be otherwise indicated in such financial statements or the
notes thereto, or (ii) in the case of unaudited interim statements, to the extent they may not include footnotes or may be condensed
or summary statements) and fairly present in all material respects the consolidated financial position of the Company and its
consolidated Subsidiaries as of the dates thereof and the consolidated results of their operations and cash flows for the periods
then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments). Except as set forth in the financial
statements of the Company included in the SEC Documents, the Company has no liabilities, contingent or otherwise, other than (i)
liabilities incurred in the ordinary course of business subsequent to June 30, 2012 and (ii) obligations under contracts and commitments
incurred in the ordinary course of business and not required under generally accepted accounting principles to be reflected in
such financial statements, which, individually or in the aggregate, are not material to the financial condition or operating results
of the Company.

 

h. Absence
of Certain Changes. Since June 30, 2012, there has been no material adverse change and no material adverse development
in the assets, liabilities, business, properties, operations, financial condition, and results of operations or prospects of the
Company or any of its Subsidiaries.

 

i. Absence
of Litigation. There is no action, suit, claim, proceeding, inquiry or investigation before or by any court, public board,
government agency, self-regulatory organization or body pending or, to the knowledge of the Company or any of its Subsidiaries,
threatened against or affecting the Company or any of its Subsidiaries, or their officers or directors in their capacity as such,
that could have a Material Adverse Effect. Schedule 3(i) contains a complete list and summary description of any pending
or threatened proceeding against or affecting the Company or any of its Subsidiaries, without regard to whether it would have
a Material Adverse Effect. The Company and its Subsidiaries are unaware of any facts or circumstances which might give rise to
any of the foregoing.

 

j.Patents, Copyrights, etc. The Company and each of its Subsidiaries owns or possesses
the requisite licenses or rights to use all patents, patent applications, patent rights, inventions, know-how, trade secrets,
trademarks, trademark applications, service marks, service names, trade names and copyrights (“Intellectual Property”)
necessary to enable it to conduct its business as now operated and as presently contemplated to be operated in the future; there
is no claim or action by any person pertaining to, or proceeding pending, or to the Company’s knowledge threatened, which
challenges the right of the Company or of a Subsidiary with respect to any Intellectual Property necessary to enable it to conduct
its business as now operated and as presently contemplated to be operated in the future; to the best of the Company’s knowledge,
the Company’s or its Subsidiaries’ current and intended products, services and processes do not infringe on any Intellectual
Property or other rights held by any person; and the Company is unaware of any facts or circumstances which might give rise to
any of the foregoing. The Company and each of its Subsidiaries have taken reasonable security measures to protect the secrecy,
confidentiality and value of their Intellectual Property.

 

k. No
Materially Adverse Contracts, Etc. Neither the Company nor any of its Subsidiaries is subject to any charter, corporate
or other legal restriction, or any judgment, decree, order, rule or regulation which in the judgment of the Company’s officers
has or is expected in the future to have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries is a party
to any contract or agreement which in the judgment of the Company’s officers has or is expected to have a Material Adverse
Effect.

 

l. Tax
Status. The Company and each of its Subsidiaries has made or filed all federal, state and foreign income and all other
tax returns, reports and declarations required by any jurisdiction to which it is subject (unless and only to the extent that
the Company and each of its Subsidiaries has set aside on its books provisions reasonably adequate for the payment of all unpaid
and unreported taxes) and has paid all taxes and other governmental assessments and charges that are material in amount, shown
or determined to be due on such returns, reports and declarations, except those being contested in good faith and has set aside
on its books provisions reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such returns,
reports or declarations apply. There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any
jurisdiction, and the officers of the Company know of no basis for any such claim. The Company has not executed a waiver with
respect to the statute of limitations relating to the assessment or collection of any foreign, federal, state or local tax.  None
of the Company’s tax returns is presently being audited by any taxing authority.

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m. Certain
Transactions. Except for arm’s length transactions pursuant to which the Company or any of its Subsidiaries makes
payments in the ordinary course of business upon terms no less favorable than the Company or any of its Subsidiaries could obtain
from third parties and other than the grant of stock options disclosed on Schedule 3(c), none of the officers, directors,
or employees of the Company is presently a party to any transaction with the Company or any of its Subsidiaries (other than for
services as employees, officers and directors), including any contract, agreement or other arrangement providing for the furnishing
of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from
any officer, director or such employee or, to the knowledge of the Company, any corporation, partnership, trust or other entity
in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee or partner.

 

n. Disclosure.
All information relating to or concerning the Company or any of its Subsidiaries set forth in this Agreement and provided to the
Investor pursuant to Section 2(d) hereof and otherwise in connection with the transactions contemplated hereby is

true and correct in all material
respects and the Company has not omitted to state any material fact necessary in order to make the statements made herein or therein,
in light of the circumstances under which they were made, not misleading. No event or circumstance has occurred or exists with
respect to the Company or any of its Subsidiaries or its or their business, properties, prospects, operations or financial conditions,
which, under applicable law, rule or regulation, requires public disclosure or announcement by the Company but which has not been
so publicly announced or disclosed (assuming for this purpose that the Company’s reports filed under the 1934 Act are being
incorporated into an effective registration statement filed by the Company under the 1933 Act).

 

o. Acknowledgment
Regarding Investor’s Purchase of Securities. The Company acknowledges and agrees that the Investor is acting solely
in the capacity of an arm’s length purchaser with respect to this Agreement and the transactions contemplated hereby. The
Company further acknowledges that the Investor is not acting as a financial advisor or fiduciary of the Company (or in any similar
capacity) with respect to this Agreement and the transactions contemplated hereby and any statement made by the Investor or any
of their respective representatives or agents in connection with this Agreement and the transactions contemplated hereby is not
advice or a recommendation and is merely incidental to the Investor’s purchase of the Securities. The Company further represents
to the Investor that the Company’s decision to enter into this Agreement has been based solely on the independent evaluation
of the Company and its representatives.

 

p. No
Integrated Offering. Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf, has
directly or indirectly made any offers or sales in any security or solicited any offers to buy any security under circumstances
that would require registration under the 1933 Act of the issuance of the Securities to the Investor. The issuance of the Securities
to the Investor will not be integrated with any other issuance of the Company’s securities (past, current or future) for
purposes of any shareholder approval provisions applicable to the Company or its securities.

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q. No
Brokers. The Company has taken no action which would give rise to any claim by any person for brokerage commissions, transaction
fees or similar payments relating to this Agreement or the transactions contemplated hereby.

 

r.
 Permits; Compliance.  The Company and each of its Subsidiaries is in possession of all franchises, grants, authorizations,
licenses, permits, easements, variances, exemptions, consents, certificates, approvals and orders necessary to own, lease and
operate its properties and to carry on its business as it is now being conducted (collectively, the “Company Permits”),
and there is no action pending or, to the knowledge of the Company, threatened regarding suspension or cancellation of any of
the Company Permits. Neither the Company nor any of its Subsidiaries is in conflict with, or in default or violation of, any of
the Company Permits, except for any such conflicts, defaults or violations which, individually or in the aggregate, would not
reasonably be expected to have a Material Adverse Effect. Since June 30, 2012, neither the Company nor any of its Subsidiaries
has received any notification with respect to possible conflicts, defaults or violations of applicable laws, except for notices
relating to possible conflicts, defaults or violations, which conflicts, defaults or violations would not have a Material Adverse
Effect.

s. Environmental
Matters.

 

(i)There
are, to the Company’s knowledge, with respect to the Company or any of its Subsidiaries or any predecessor of the Company,
no past or present violations of Environmental Laws (as defined below), releases of any material into the environment, actions,
activities, circumstances, conditions, events, incidents, or contractual obligations which may give rise to any common law environmental
liability or any liability under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 or similar federal,
state, local or foreign laws and neither the Company nor any of its Subsidiaries has received any notice with respect to any of
the foregoing, nor is any action pending or, to the Company’s knowledge, threatened in connection with any of the foregoing.
The term “Environmental Laws” means all federal, state, local or foreign laws relating to pollution or protection
of human health or the environment (including, without limitation, ambient air, surface water, groundwater, land surface or subsurface
strata), including, without limitation, laws relating to emissions, discharges, releases or threatened releases of chemicals,
pollutants contaminants, or toxic or hazardous substances or wastes (collectively, “Hazardous Materials”) into
the environment, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport
or handling of Hazardous Materials, as well as all authorizations, codes, decrees, demands or demand letters, injunctions, judgments,
licenses, notices or notice letters, orders, permits, plans or regulations issued, entered, promulgated or approved thereunder.

 

(ii)Other
than those that are or were stored, used or disposed

of in compliance with applicable
law, no Hazardous Materials are contained on or about any real property currently owned, leased or used by the Company or any
of its Subsidiaries, and no Hazardous Materials were released on or about any real property previously owned, leased or used by
the Company or any of its Subsidiaries during the period the property was owned, leased or used by the Company or any of its Subsidiaries,
except in the normal course of the Company’s or any of its Subsidiaries’ business.

    	9

    	 

    

 

(iii)There
are no underground storage tanks on or under any real property owned, leased or used by the Company or any of its Subsidiaries
that are not in compliance with applicable law.

 

t.Title
to Property.  The Company and its Subsidiaries have good and marketable title in fee simple to all real property and good
and marketable title to all personal property owned by them which is material to the business of the Company and its Subsidiaries,
in each case free and clear of all liens, encumbrances and defects except such as are described in Schedule 3(t) or such
as would not have a Material Adverse Effect.  Any real property and facilities held under lease by the Company and its Subsidiaries
are held by them under valid, subsisting and enforceable leases with such exceptions as would not have a Material Adverse Effect.

 

u. Insurance.
The Company and each of its Subsidiaries are insured by insurers of recognized financial responsibility against such losses and
risks and in such amounts as management of the Company believes to be prudent and customary in the businesses in which the Company
and its Subsidiaries are engaged.  Neither the Company nor any such Subsidiary has any reason to believe that it will not be able
to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers
as may be necessary to continue its business at a cost that would not have a Material Adverse Effect.  Upon written request the
Company will provide to Investor true and correct copies of all policies relating to directors’ and officers’ liability
coverage, errors and omissions coverage, and commercial general liability coverage.

 

v. 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 management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit
preparation of financial statements in conformity with generally accepted accounting principles and to maintain asset accountability,
(iii) access to assets is permitted only in accordance with management’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.

 

w. Foreign
Corrupt Practices. Neither the Company, nor any of its Subsidiaries, nor any director, officer, agent, employee or other
person acting on behalf of the Company or any Subsidiary has, in the course of his actions for, or on behalf of, the Company,
used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expenses relating to political activity;
made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds;
violated or is in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended, or made any bribe,
rebate, payoff, influence payment, kickback or other unlawful payment to any foreign or domestic government official or employee.

    	10

    	 

    

 

x. Solvency.
The Company (after giving effect to the transactions contemplated by this Agreement) is solvent (i.e., its assets have
a fair market value in excess of the amount required to pay its probable liabilities on its existing debts as they become absolute
and matured) and currently the Company has no information that would lead it to reasonably conclude that the Company would not,
after giving effect to the transaction contemplated by this Agreement, have the ability to, nor does it intend to take any action
that would impair its ability to, pay its debts from time to time incurred in connection therewith as such debts mature. The Company
did not receive a qualified opinion from its auditors with respect to its most recent fiscal year end and, after giving effect
to the transactions contemplated by this Agreement, does not anticipate or know of any basis upon which its auditors might issue
a qualified opinion in respect of its current fiscal year.

 

y. No
Investment Company. The Company is not, and upon the issuance and sale of the Securities as contemplated by this Agreement
will not be an “investment company” required to be registered under the Investment Company Act of 1940 (an

“Investment Company”).
The Company is not controlled by an Investment Company.

 

z.
 Breach of Representations and Warranties by the Company.  If the Company breaches any of the representations or warranties
set forth in this Section 3, and in addition to any other remedies available to the Investor pursuant to this Agreement, it will
be considered an event of Default under Section 3.4 of the Note.

 

4.COVENANTS.

 

a. Best
Efforts. The parties shall use their best efforts to satisfy timely each of the conditions described in Section 6 and
7 of this Agreement.

 

b. Form
D; Blue Sky Laws. The Company agrees to file a Form D with respect to the Securities as required under Regulation D and
to provide a copy thereof to the Investor promptly after such filing. The Company shall, on or before the Closing Date, take such
action as the Company shall reasonably determine is necessary to qualify the Securities for sale

to the Investor at the applicable
closing pursuant to this Agreement under applicable securities or “blue sky” laws of the states of the United States
(or to obtain an exemption from such qualification), and shall provide evidence of any such action so taken to the Investor on
or prior to the Closing Date.

 

c.
 Use of Proceeds. The Company shall use the net proceeds from the sale of the Notes for general working capital purposes.

    	11

    	 

    

 

d. Right
of First Refusal. Subject to the exemptions described below, the Company will not conduct any equity financing (including
debt with an equity component) (“Future Offerings”) during the period beginning on the Closing Date and ending twelve
(12) months following the Closing Date unless it shall have first delivered to the Investor, at leastseventy-two (72) hours prior
to the closing of such Future Offering, a written notice describing the proposed Future Offering, including the terms and conditions
thereof and proposed definitive documentation to be entered into in connection therewith, and providing the Investor an option
during the seventy-two (72) hour period following delivery of such notice to purchase the securities being offering in the Future
Offering on the same terms as contemplated by such Future Offering (the limitations referred to in this sentence and the preceding
sentence are collectively referred to as the “Right of First Refusal”). In the event the terms and conditions of a
proposed Future Offering are amended in any respect after delivery of the notice to the Investor concerning the proposed Future
Offering, the Company shall deliver a new notice to the Investor describing the amended terms and conditions of the proposed Future
Offering and the Investor thereafter shall have an option during the seventy-two (72) hour period following delivery of such new
notice to purchase the securities being offered on the same terms as contemplated by such proposed Future Offering, as amended.
The foregoing sentence shall apply to successive amendments to the terms and conditions of any proposed Future Offering.  The
Right of First Refusal shall not apply to any transaction involving (i) issuances of securities in a firm commitment underwritten
public offering (excluding a continuous offering pursuant to Rule 415 under the 1933 Act), or (ii) issuances of securities as
consideration for a merger, consolidation or purchase of assets, or in connection with any strategic partnership or joint venture
(the primary purpose of which is not to raise equity capital), or in connection with the disposition or acquisition of a business,
product or license by the Company. The Right of First Refusal also shall not apply to the issuance of securities upon exercise
or conversion of the Company’s options, warrants or other convertible securities outstanding as of the date hereof or to
the grant of additional options or warrants, or the issuance of additional securities, under any Company stock option or restricted
stock plan approved by the shareholders of the Company.

 

e.
 Expenses. At the Closing, the Company shall reimburse the Investor for expenses incurred by them in connection with
the negotiation, preparation, execution, delivery and performance of this Agreement and the other agreements to be executed in
connection herewith (“Documents”), including, without limitation, attorneys’ and consultants’ fees and
expenses, transfer agent fees, fees for stock quotation services, fees relating to any amendments or modifications of the Documents
or any consents or waivers of provisions in the Documents, fees for the preparation of opinions of counsel, escrow fees, and costs
of restructuring the transactions contemplated by the Documents. When possible, the Company must pay these fees directly, otherwise
the Company must make immediate payment for reimbursement to the Investor for all fees and expenses immediately upon written notice
by the Investor or the submission of an invoice by the Investor. The Company’s obligation with respect to this transaction
is to reimburse Investor’s expense, which shall be $1,500.00.

 

f.Financial
Information. The Company agrees to send the following reports to the Investor until the Investor transfers, assigns, or
sells all of the Securities: (i) within ten (10) days after the filing with the SEC, a copy of its Annual Report on Form 10-K
its Quarterly Reports on Form 10-Q and any Current Reports on Form 8-K; (ii) within one (1) day after release, copies of all press
releases issued by the Company or any of its Subsidiaries; and (iii) contemporaneously with the making available or giving to
the shareholders of the Company, copies of any notices or other information the Company makes available or gives to such shareholders.

g. Authorization
and Reservation of Shares. The Company shall at all times have authorized, and reserved for the purpose of issuance, a
sufficient number of shares of Common Stock to provide for the full conversion or exercise of the outstanding Note and Warrants
and issuance of the Conversion Shares in connection therewith (based on the Conversion Price of the Note in effect from time to
time and number of shares of Common Stock issuable upon due exercise of the Warrants) and as otherwise required by the Note and
Warrants. The Company shall not reduce the number of shares of Common Stock reserved for issuance upon conversion of Note or exercisable
under the Warrants without the consent of the Investor. The Company shall at all times maintain the number of shares of Common
Stock so reserved for issuance at an amount (“Reserved Amount”) equal to no less than the number of shares
issuable upon full exercise of the Warrants and two (2) times the number that is then actually issuable upon full conversion of
the Note and Additional Notes (based on the Conversion Price of the Note).  If at any time the number of shares of Common Stock
authorized and reserved for issuance (“Authorized and Reserved Shares”) is below the Reserved Amount, the Company
will promptly take all corporate action necessary to authorize and reserve a sufficient number of shares, including, without limitation,
calling a special meeting of shareholders to authorize additional shares to meet the Company’s obligations herein, in the
case of an insufficient number of authorized shares, obtain shareholder approval of an increase in such authorized number of shares,
and voting the management shares of the Company in favor of an increase in the authorized shares of the Company to ensure that
the number of authorized shares is sufficient to meet the Reserved Amount.

 

h. Listing.
The Company shall promptly secure the listing or quotation, as the case may be, of the Conversion Shares upon each national securities
exchange or automated quotation system, if any, upon which shares of Common Stock are then listed or quoted, as the case may be,
(subject to official notice of issuance) and, so long as the Investor owns any of the Securities, shall maintain, so long as any
other shares of Common Stock shall be so listed or quoted, as the case may be, such listing or quotation, as the case may be,
of all Conversion Shares  from time to time issuable upon conversion of the Notes. The Company will obtain and, so long as the
Investor owns any of the Securities, maintain the listing or quotation, as the case may be, and trading of its Common Stock on
the OTCBB or any equivalent replacement exchange, the Nasdaq National Market (“Nasdaq”), the Nasdaq SmallCap
Market (“Nasdaq SmallCap”), the New York Stock Exchange (“NYSE”), or the American Stock
Exchange (“AMEX”) and will comply in all respects with the Company’s reporting, filing and other obligations
under the bylaws or rules of the Financial Industry Regulatory Authority (“FINRA”) and such exchanges, as applicable.
The Company shall promptly provide to the Investor copies of any notices it receives from the OTCBB and any other exchanges or
quotation systems on which the Common Stock is then listed or quoted, as the case may be, regarding the continued eligibility
of the Common Stock for listing or quotation, as the case may be, on such exchanges and quotation systems.

 

i.Corporate
Existence. So long as a Investor beneficially owns the Note or the Warrants, the Company shall maintain its corporate
existence and shall not sell all or substantially all of the Company’s assets, except in the event of a merger or consolidation
or sale of all or substantially all of the Company’s assets, where the surviving or successor entity in such transaction
(i) assumes the Company’s obligations hereunder and under the agreements and instruments entered into in connection herewith
and (ii) is a publicly traded corporation whose Common Stock is listed for trading on the OTCBB, Nasdaq, Nasdaq SmallCap, NYSE
or AMEX.

    	12

    	 

    

 

j.No
Integration. The Company shall not make any offers or sales of any security (other than the Securities) under circumstances
that would require registration of the Securities being offered or sold hereunder under the 1933 Act or cause the offering of
the Securities to be integrated with any other offering of securities by the Company for the purpose of any stockholder approval
provision applicable to the Company or its securities.

 

k. Failure
to Comply with the 1934 Act. So long as the Investor beneficially owns any of the Notes, the Company shall comply with
the reporting requirements of the 1934 Act; and the Company shall continue to be subject to the reporting requirements of the
1934 Act.

 

l.Breach
of Covenants.  If the Company breaches any of the covenants set forth in this Section 4, and in addition to any other
remedies available to the Investor pursuant to this Agreement, it will be considered an Event of Default pursuant to Section 3.4
of the Note.

 

5.TRANSFER
AGENT INSTRUCTIONS. The Company shall issue irrevocable instructions to its transfer agent to issue certificates, registered
in the name of the Investor or its nominee, for the Conversion Shares in such amounts as specified from time to time by the Investor
to the Company upon conversion of the Note or exercise of the Warrants, in accordance with the terms thereof (the “Irrevocable
Transfer Agent Instructions”).  In the event that the Company proposes to replace its transfer agent, the Company shall
provide, prior to the effective date of such replacement, a fully execute Irrevocable Transfer Agent Instruction in a form as
initially delivered pursuant to this Agreement signed by the successor transfer agent to the Investor. Prior to registration of
the Conversion Shares under the 1933 Act or the date on which the Conversion Shares may be sold pursuant to Rule 144 without any
restriction as to the number of Securities as of a particular date that can then be immediately sold, all such certificates shall
bear the restrictive legend specified in Section 2(g) of this Agreement. The Company warrants that (i) no instruction other than
the Irrevocable Transfer Agent Instructions referred to in this Section 5, and stop transfer instructions to give effect to Section
2(f) hereof (in the case of the Conversion Shares, prior to registration of the Conversion Shares under the 1933 Act or the date
on which the Conversion Shares  may be sold pursuant to Rule 144 without any restriction as to the number of Securities as of
a particular date that can then be immediately sold), will be given by the Company to its transfer agent and that the Securities
shall otherwise be freely transferable on the books and records of the Company as and to the extent provided in this Agreement
and the Note; (ii) it will not direct its transfer agent not to transfer or delay, impair, and/or hinder its transfer agent in
transferring (or issuing)(electronically or in certificated form) any certificate for Conversion Shares to be issued to the Investor
upon conversion of or otherwise pursuant to the Securities as and when required by the Securities or this Agreement; and (iii)
it will not fail to remove (or direct its transfer agent not to remove or impair, delay, and/or hinder its transfer agent from
removing) any restrictive legend (or to withdraw any stop transfer instructions in respect thereof). Nothing in this Section shall
affect in any way the Investor’s obligations and agreement set forth in Section 2(g) hereof to comply with all applicable
prospectus delivery requirements, if any, upon re-sale of the Securities.  If a Investor provides the Company with (i) an opinion
of counsel in form, substance and scope customary for opinions in comparable transactions, to the effect that a public sale or
transfer of such Securities may be made without registration under the 1933 Act and such sale or transfer is effected or (ii)
the Investor provides reasonable assurances that the Securities can be sold pursuant to Rule 144, the Company shall permit the
transfer, and, in the case of the Conversion Shares , promptly instruct its transfer agent to issue one or more certificates,
free from restrictive legend, in such name and in such denominations as specified by the Investor. The Company acknowledges that
a breach by it of its obligations hereunder will cause irreparable harm to the Investor, by vitiating the intent and purpose of
the transactions contemplated hereby. Accordingly, the Company acknowledges that the remedy at law for a breach of its obligations
under this Section 5 may be inadequate and agrees, in the event of a breach or threatened breach by the Company of the provisions
of this Section, that the Investor shall be entitled, in addition to all other available remedies, to an injunction restraining
any breach and requiring immediate transfer, without the necessity of showing economic loss and without any bond or other security
being required.

6.
CONDIT IONS  T O T HE COMPA NY’S O B L IG ATION TO SELL. The obligation of the Company hereunder to issue and
sell the Securities to a Investor at the Closing is subject to the satisfaction, at or before the Closing Date of each of the
following conditions thereto, provided that these conditions are for the Company’s sole benefit and may be waived by the
Company at any time in its sole discretion: same to the Company.

a. The Investor shall
have executed this Agreement and delivered the

 

b. The
Investor shall have delivered the Purchase Price in accordance with Section 1(b) above.

 

c. The
representations and warranties of the Investor shall be true and correct in all material respects as of the date when made and
as of the Closing Date as though made at that time (except for representations and warranties that speak as of a specific date),
and the Investor shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions
required by this Agreement to be performed, satisfied or complied with by the Investor at or prior to the Closing Date.

 

d. No
litigation, statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated
or endorsed by or in any court or governmental authority of competent jurisdiction or any self-regulatory organization having
authority over the matters contemplated hereby which prohibits the consummation of any of the transactions contemplated by this
Agreement.

 

7.CONDITIONS
TO THE INVESTOR’S O BL IGATIO N TO  PURCHASE. The obligation of the Investor hereunder to purchase the Notes
at the Closing is subject to the satisfaction, at or before the Closing Date of each of the following conditions, provided that
these conditions are for the Investor’s sole benefit and may be waived by the Investor at any time in its sole discretion:
same to the Investor.

 

a. The
Company shall have executed this Agreement and delivered the

 

b. The
Company shall have delivered to the Investor a duly executed Note, Warrant and Registration Rights Agreement  in accordance with
Section 1(b) above.

 

c. The
Irrevocable Transfer Agent Instructions, in form and substance satisfactory to he Investor, shall have been delivered to and acknowledged
in writing by the Company’s Transfer Agent.

d. The
representations and warranties of the Company shall be true and correct in all material respects as of the date when made and
as of the Closing Date as though made at such time (except for representations and warranties that speak as of a specific date)
and the Company shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions
required by this Agreement to be performed, satisfied or complied with by the Company at or prior to the Closing Date. The Investor
shall have received a certificate or certificates, executed by the chief executive officer of the Company, dated as of the Closing
Date, to the foregoing effect and as to such other matters as may be reasonably requested by the Investor including, but not limited
to certificates with respect to the Company’s Certificate of Incorporation, By-laws and Board of Directors’ resolutions
relating to the transactions contemplated hereby.

 

e. No
litigation, statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated
or endorsed by or in any court or governmental authority of competent jurisdiction or any self-regulatory organization having
authority over the matters contemplated hereby which prohibits the consummation of any of the transactions contemplated by this
Agreement.

 

f.No
event shall have occurred which could reasonably be expected to have a Material Adverse Effect on the Company; including, without
limitation, a change in the 1934 Act reporting status of the Company or the failure of the Company to be timely in it’s
1934 Act reporting obligations.

 

g. The
Conversion Shares shall have been authorized for quotation on the OTCBB and trading in the Common Stock on the OTCBB shall not
have been suspended by the SEC or the OTCBB.

 

h. The
Investor shall have received an officer’s certificate described in Section 3(c) above, dated as of the Closing Date.

 

8.REGISTRATION

 

a. PIGGY-BACK
REGISTRATIONS. If at any time prior to the expiration of the Registration Period (as hereinafter defined) the Company shall
determine to file with the SEC a Registration Statement relating to an offering for its own account or the account of others under
the 1933 Act of any of its equity securities (other than on Form S-4 or Form S-8 or their then equivalents relating to equity
securities to be issued solely in connection with any acquisition of any entity or business or equity securities issuable in connection
with stock option or other employee benefit plans), the Company shall send to Buyer written notice of such determination and,
if within fifteen (15) days after the effective date of such notice, the Buyer shall so request in writing, the Company shall
include in such Registration Statement all or any part of the Registrable Securities the Buyer requests to be registered, except
that if, in connection with any underwritten public offering for the account of the Company, the managing underwriter(s) thereof
shall impose a limitation on the number of shares of Common Stock which may be included in the Registration Statement because,
in such underwriter(s)' judgment, marketing or other factors dictate such limitation is necessary to facilitate public distribution,
then the Company shall be obligated to include in such Registration Statement only such limited portion of the Registrable Securities
with respect to which the Buyer has requested inclusion hereunder as the underwriter shall permit;

    	13

    	 

    

 

PROVIDED,
HOWEVER, that the Company shall not exclude any Registrable Securities unless the Company has first excluded all outstanding
securities, the holders of which are not entitled by contract to inclusion of such securities in such Registration Statement or
are not entitled to pro rata inclusion with the Registrable Securities; and

 

PROVIDED,
FURTHER, HOWEVER, that, after giving effect to the immediately preceding proviso, any exclusion of Registrable Securities
shall be made pro rata with holders of other securities having the contractual right to include such securities in the Registration
Statement other than holders of securities entitled to inclusion of their securities in such Registration Statement by reason
of demand registration rights. No right to registration of Registrable Securities under this Section 2(b) shall be construed to
limit any registration required. If an offering in connection with which the Buyer is entitled to registration under this Section
2(d) is an underwritten offering, then the Buyer shall, unless otherwise agreed by the Company, offer and sell such Registrable
Securities in an underwritten offering using the same underwriter or underwriters and, subject to the provisions of this Agreement,
on the same terms and conditions as other shares of Common Stock included in such underwritten offering. Notwithstanding anything
to the contrary set forth herein, the registration rights of the Buyer pursuant to this Section 2(b) shall only be available in
the event the Company fails to timely file, obtain effectiveness or maintain effectiveness of any Registration Statement to be
filed in accordance with the terms of this Agreement.

 

9.GOVERNING
LAW; MISCELLANEOUS.

 

a. Governing
Law. THIS AGREEMENT SHALL BE ENFORCED, GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK
APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICT OF
LAWS. THE PARTIES HERETO HEREBY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE UNITED STATES FEDERAL COURTS LOCATED IN NEW YORK,
NEW YORK WITH RESPECT TO ANY DISPUTE ARISING UNDER THIS AGREEMENT, THE AGREEMENTS ENTERED INTO IN CONNECTION HEREWITH OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY. BOTH PARTIES IRREVOCABLY WAIVE THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH
SUIT OR PROCEEDING. BOTH PARTIES FURTHER AGREE THAT SERVICE OF PROCESS UPON A PARTY MAILED BY FIRST CLASS MAIL SHALL BE DEEMED
IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON THE PARTY IN ANY SUCH SUIT OR PROCEEDING. NOTHING HEREIN SHALL AFFECT EITHER
PARTY’S RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW. BOTH PARTIES AGREE THAT A FINAL NON-APPEALABLE JUDGMENT
IN ANY SUCH SUIT OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON SUCH JUDGMENT OR IN ANY
OTHER LAWFUL MANNER. THE PARTY WHICH DOES NOT PREVAIL IN ANY DISPUTE ARISING UNDER THIS AGREEMENT SHALL BE RESPONSIBLE FOR ALL
FEES AND EXPENSES, INCLUDING ATTORNEYS’ FEES, INCURRED BY THE PREVAILING PARTY IN CONNECTION WITH SUCH DISPUTE.

    	14

    	 

    

 

b. Counterparts;
Signatures by Facsimile. This Agreement may be executed in one or more counterparts, each of which shall be deemed an
original but all of which shall constitute one and the same agreement and shall become effective when counterparts have been signed
by each party and delivered to the other party. This Agreement, once executed by a party, may be delivered to the other party
hereto by facsimile transmission of a copy of this Agreement bearing the signature of the party so delivering this Agreement.

 

c.
 Headings. The headings of this Agreement are for convenience of reference only and shall not form part of, or affect
the interpretation of, this Agreement.

 

d. Severability.
 In the event that any provision of this Agreement is invalid or unenforceable under any applicable statute or rule of law, then
such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform
with such statute or rule of law. Any provision hereof which may prove invalid or unenforceable under any law shall not affect
the validity or enforceability of any other provision hereof.

 

e.
 Entire Agreement; Amendments. This Agreement and the instruments referenced herein contain the entire understanding
of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein,
neither the Company nor the Investor makes any representation, warranty, covenant or undertaking with respect to such matters.
 No provision of this Agreement may be waived or amended other than by an instrument in writing signed by the party to be charged
with enforcement.

    	15

    	 

    

 

f.Notices.
Any notices required or permitted to be given under the terms of this Agreement shall be sent by certified or registered mail
(return receipt requested) or delivered personally or by courier (including a recognized overnight delivery service) or by facsimile
and shall be effective five (5) days after being placed in the mail, if mailed by regular United States mail, or upon receipt,
if delivered personally or by courier (including a recognized overnight delivery service) or by facsimile, in each case addressed
to a party.  The addresses for such communications shall be:

 

If to the Company:

 

Nyxio Technologies Corp.

2156 NE Broadway

Portland, Oregon 97232

 

Attention: Giorgio Johnson

Telephone: (855) 436-6996

Facsimile:

 

With a copy to:

 

__________, Esq.

Telephone: Facsimile:

 

If to a Investor:

Continental Equities, LLC

888 7th Avenue

New York, NY 10106

 

With copy to: Sommer &
Schneider

595 Stewart Avenue, Suite 710

Garden City, NY 11530

 

Attn: Joel Schneider

Telephone: (516) 228-8181

Facsimile: (516) 228-8211

 

Each party shall provide notice
to the other party of any change in address.

 

g. Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and assigns.
 Neither the Company nor the Investor shall assign this Agreement or any rights or obligations hereunder without the prior written
consent of the other. Notwithstanding the foregoing, subject to Section 2(f), the Investor may assign its rights hereunder to
any person that purchases Securities in a private transaction from a Investor or to any of its “affiliates,” as that
term is defined under the 1934 Act, without the consent of the Company.

    	16

    	 

    

 

h. Third
Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted successors
and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

 

i.Survival.
The representations and warranties of the Company and the agreements and covenants set forth in this Agreement shall survive the
closing hereunder notwithstanding any due diligence investigation conducted by or on behalf of the Investor. The Company agrees
to indemnify and hold harmless the Investor and all it’s officers, directors, employees and agents for loss or damage arising
as a result of or related to any breach or alleged breach by the Company of any of its representations, warranties and covenants
set forth in this Agreement, including advancement of expenses as they are incurred.

 

j.Publicity.
The Company and the Investor shall have the right to review a reasonable period of time before issuance of any press releases,
SEC, OTCBB or FINRA filings, or any other public statements with respect to the transactions contemplated hereby; provided,
however, that the Company shall be entitled, without the prior approval of the Investor, to make any press release or SEC,
OTCBB (or other applicable trading market) or FINRA filings with respect to such transactions as is required by applicable law
and regulations (although the Investor shall be consulted by the Company in connection with any such press release prior to its
release and shall be provided with a copy thereof and be given an opportunity to comment thereon).

 

k. Further
Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and
shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably
request

in order to carry out the intent
and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

l.No
Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express
their mutual intent, and no rules of strict construction will be applied against any party.

 

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

    	17

    	 

    

 

IN WITNESS
WHEREOF, the undersigned Investor and the Company have caused this Agreement to be duly executed as of the date first above
written. NYXIO TECHNOLOGIES CORP.

 

By: /s/ Giorgio Johnson

Name: Giorgio Johnson

Title:Chief Executive Officer

 

CONTINENTAL EQUITIES LLC By:

Name: /s/ Continental Equities
LLC

Title: Managing Member

    	18REGISTRATION
RIGHTS AGREEMENT

 

REGISTRATION
RIGHTS
AGREEMENT
(this "Agreement"),
dated
as of
September
20, 2012, by and
between
NYXIO
TECHNOLOGIES
CORP.,
a Nevada
corporation
(the "Company"),
and CONTINENTAL
EQUITIES
LLC.,
a New
York limited
liability
company
(“Continental”
or the “Buyer”).

 

WHEREAS:

 

A.
 In connection
with the Securities
Purchase
Agreement by and among
the parties hereto
of even
date herewith
(the "Securities
Purchase
Agreement"),
the Company has
agreed,
upon the terms
and subject
to the conditions
contained
therein, to
issue and
sell to
the Buyer
the following (as
each
capitalized
term not
otherwise defined
herein
shall have
the meaning
ascribed
to it in the Securities
Purchase
Agreement):

 

(i) Convertible
Note of the Company (the “Note”)
issued pursuant
to the Securities
Purchase
Agreement,
and

 

(ii)
where the Note
is convertible
into shares
of the
Company's
common
stock, par
value $0. 001
per share
(the "Common
Stock"), upon
the terms and
subject
to the limitations
and conditions
set forth in the
Note and subject
to the terms and conditions
of the Securities
Purchase
Agreement;
and

 

B.
 To induce
the Buyer
to execute
and deliver
the Securities
Purchase
Agreement,
the Company has
agreed
to provide certain
registration
rights under
the Securities
Act of 1933,
as amended,
and the
rules and regulations
thereunder,
or any similar
successor
statute (collectively,
the "1933 Act"),
and applicable
state securities
laws;

 

NOW,
THEREFORE,
In consideration
of the premises
and the
mutual
covenants
contained herein
and other
good and
valuable
consideration,
the receipt
and sufficiency
of which are
hereby
acknowledged,
the Company
and the
Buyer
hereby
agree
as follows:

 

1. DEFINITIONS.

 

a.As
used in this  Agreement,
the following terms shall have the 
following meanings:

 

(i)
"BUYER"
means Continental
Equities, LLC.,
and any transferee
or assignee
who agrees
to become
bound by the
provisions of
this Agreement
in accordance
with Section
9 hereof.

 

(ii)
“FILING
DEADLINE,”
for a given
Registration
statement, shall
mean the date
that is thirty
(30) days
after
the date of
the request for such
registration.

 

    	 

    	 

    

 

(iii)
“REGISTRATION
DEADLINE”
shall mean
the date
that
is one hundred
ninety (190)
days after
the date
of the request
for which such
registration
is being effected.

 

(iv)
RESERVED.

 

(v)
"REGISTER,"
"REGISTERED,"
and "REGISTRATION"
refer to
a registration
effected
by preparing
and filing a Registration
Statement
or Statements in compliance
with the 1933
Act and pursuant
to Rule 415 under
the 1933 Act or any
successor
rule providing
for offering
securities
on a continuous
basis ("RULE
415"),
and the
declaration
or ordering
of effectiveness
of such Registration
Statement
by the United
States Securities
and Exchange
Commission (the "SEC").

 

(vi)
"REGISTRABLE
SECURITIES,"
for a given
Registration,
means (a)
the shares of Common Stock
(the “Conversion Shares”)
issued or issuable
upon full conversion
of the Note
or otherwise
pursuant to
the Note for
which such
Registration
is being effected
(including,
without limitation,
any shares
issued or
issuable as
“Payment
Shares”
or otherwise
pursuant to the Securities
Purchase
Agreement),
and (b) any
shares of capital
stock issued or issuable
as a dividend
on or in exchange
for or otherwise with respect
to any
of the foregoing,
and (c)
any other
shares of
common
stock issued
pursuant to
the terms
of the
Securities
Purchase
Agreement, the
Note, the
this Registration
Rights Agreement
or any
other Transaction
Document (as defined
in the Securities
Purchase
Agreement),
and (d)
any securities
issued or
issuable
upon any stock
split, dividend
or other distribution,
recapitalization
or similar
event
with respect
to the foregoing.

 

(vii) "REGISTRATION
STATEMENT(S)"
means
a registration
statement(s) of
the Company
under the
1933 Act.

 

b.
Capitalized
terms used herein
and not
otherwise
defined
herein
shall have the respective
meanings
set forth in
the Securities
Purchase
Agreement.

 

2. REGISTRATION.

 

a. 
MANDATORY
REGISTRATION.
Following the Closing
of the Note pursuant
to the Securities
Purchase
Agreement,
the Company
upon the request
of the Buyer
shall prepare,
and, on
or prior
to the applicable
Filing Deadline
(as defined
above)
file with the
SEC a Registration
Statement on
Form
S-1
(or, if
Form
S-1
is not
then available,
on such form
of Registration
Statement as
is then available
to effect
a registration
of the Registrable
Securities,
subject to the consent
of the Buyer,
which consent
will not be unreasonably
withheld) covering
the resale
of the Registrable
Securities
which Registration
Statement,
to the extent
allowable
under the
1933 Act
and the rules
and regulations
promulgated
thereunder
(including Rule
416), shall state that such Registration
Statement also
covers such indeterminate
number of additional
shares of Common Stock
as may
become issuable
upon conversion of or
otherwise pursuant to the
Note to prevent
dilution
resulting from
stock splits,
stock dividends
or similar
transactions.
The number of shares of Common
Stock initially
included in such Registration
Statement shall be
no less than
two (2) times
the aggregate
number
of Conversion
Shares
that are then
issuable upon conversion
of the Note or otherwise pursuant
to the Note (based
on the Conversion Price
[as defined
in the Note] then
in effect),
without regard
to any limitation
on the Buyer's
ability
to convert the Note.
The Company acknowledges
that the number of shares initially
included in each
Registration
Statement
represents
a good
faith
estimate
of the maximum
number of shares issuable
upon conversion
of the Note or otherwise
pursuant to
the Note and
shall be amended
if not sufficient. 
Each Registration
Statement (and
each amendment
or supplement thereto, and
each request
for acceleration
of effectiveness
thereof) shall
be provided to
(and
subject to
the approval
of) the
Buyer
and its
counsel
prior to
its filing or
other submission. The
Buyer
has the right
to request
a total of two (2)
Registration
Statement be
filed under
this section.

    	2

    	 

    

 

b.
PIGGY-BACK
REGISTRATIONS.
If at any
time prior
to the expiration
of the Registration
Period (as
hereinafter
defined)
the Company
shall
determine
to file with the
SEC a Registration
Statement relating
to an offering
for
its own account or the
account of others
under the
1933 Act
of any
of its
equity securities
(other than
on Form
S-4
or Form
S-8
or their then equivalents
relating to equity
securities
to be issued
solely in connection
with any acquisition
of any
entity or
business or
equity securities
issuable
in connection
with stock option
or other employee
benefit
plans),
the Company shall
send to
Buyer
written notice
of such determination
and, if
within fifteen
(15) days
after
the effective
date of
such notice,
the Buyer
shall so request
in writing,
the Company
shall include in such
Registration
Statement all
or any
part of
the Registrable
Securities
the Buyer
requests
to be registered,
except
that if, in
connection
with any
underwritten 
public  offering
 for  the 
account 
of  the 
Company, 
the  managing
underwriter(s)
thereof shall
impose a
limitation
on the
number of shares
of Common
Stock which
may be included
in the Registration
Statement
because, in
such underwriter(s)'
judgment,
marketing
or other factors
dictate such
limitation
is necessary
to facilitate
public distribution,
then the Company shall be obligated
to include in such Registration
Statement
only such limited
portion of the Registrable
Securities
with respect
to which
the Buyer
has requested
inclusion hereunder
as the underwriter
shall permit;

 

PROVIDED,
HOWEVER,
that the Company
shall not
exclude
any Registrable
Securities
unless the Company
has first
excluded
all outstanding
securities,
the holders of
which are
not entitled
by contract
to inclusion of such securities
in such Registration
Statement or
are not entitled
to pro rata inclusion
with the Registrable
Securities;
and

 

PROVIDED,
FURTHER,
HOWEVER,
that, after
giving
effect
to the immediately
preceding
proviso, any
exclusion
of Registrable
Securities
shall be
made pro
rata with
holders of
other securities
having the
contractual
right
to include such
securities
in the Registration
Statement
other than holders
of securities
entitled
to inclusion of their
securities
in such Registration
Statement by
reason
of demand
registration
rights. No right
to registration
of Registrable
Securities
under
this Section
2(b) shall
be construed
to limit
any registration
required
under Section
2(a) hereof.
If an
offering
in connection
with which
the Buyer
is entitled
to registration
under this
Section
2(d) is an
underwritten
offering,
then the Buyer
shall,
unless otherwise agreed
by the Company,
offer
and sell
such Registrable
Securities
in an underwritten
offering
using the same
underwriter
or underwriters
and, subject
to the provisions
of this Agreement,
on the same
terms and
conditions
as other
shares
of Common Stock
included in
such underwritten offering.
Notwithstanding
anything
to the contrary
set forth
herein, the
registration
rights of
the Buyer
pursuant
to this
Section
2(b) shall
only be
available
in the event
the Company fails
to timely
file, obtain effectiveness
or maintain effectiveness
of any Registration
Statement to be filed
pursuant to Section
2(a) in accordance
with the terms
of this Agreement.

 

    	3

    	 

    

 

3. OBLIGATIONS
OF THE COMPANY.
In connection
with the registration
of the Registrable
Securities,
the Company
shall
have the
following obligations:

 

a.
The Company shall
prepare promptly,
and file with
the SEC
as soon as
practicable
after
the request for
registration
from the
Buyer
under the
Securities
Purchase
Agreement (the
"CLOSING
DATE")
(but no
later than
the Filing
Deadline),
Registration
Statements
with respect
to the number of Registrable
Securities
provided
in Section
2(a), and
thereafter
use its
best
efforts
to cause
each
such Registration
Statement relating
to Registrable
Securities
to become
effective
as soon as possible
after
such filing, but
in any event
shall
cause each
such Registration
Statement
relating to
Registrable
Securities
to become
effective
no later than the Registration
Deadline,
and shall
keep
the Registration
Statement
current
and effective
pursuant to
Rule 415 at
all times
until such date
as is
the earlier of
(i) the date
on which
all of the Registrable
Securities
for such Registration
Statement have
been sold
and (ii) the date
on which all
of the Registrable
Securities
for such Registration
Statement
(in the opinion
of counsel
to the Buyer)
may be immediately
sold to the public
without registration
or restriction (including
without limitation
as to volume
by each
holder thereof)
under the
1933 Act (the "REGISTRATION
PERIOD"),
which
Registration
Statement
(including
any amendments
or supplements thereto and
prospectuses contained
therein) shall not contain
any
untrue statement of
a material
fact or
omit to
state a material
fact required
to be stated
therein,
or necessary
to make the statements therein
not misleading.

 

b. The
Company shall
prepare
and file
with the SEC
such amendments
(including post-effective
amendments)
and supplements
to each Registration
Statements
and the prospectus
used in connection
with the Registration
Statements
as may be
necessary
to keep
the Registration
Statements
current
and effective
at all
times during
the Registration
Period, and,
during such
period, comply
with the
provisions of
the 1933
Act with respect
to the
disposition of
all Registrable
Securities
of the Company
covered
by the Registration
Statements
until such time
as all of such Registrable
Securities
have been
disposed
of in accordance
with the intended
methods of disposition by the seller
or sellers
thereof as set
forth in the Registration
Statements. In
the event that on any
Trading
Day (as
defined
in the Note)
(the "REGISTRATION
TRIGGER
DATE") the
number of shares
available
under a
Registration
Statement filed
pursuant to
this Agreement
is insufficient
to cover
all of the
Registrable
Securities
issued
or issuable upon conversion
of the Note
or otherwise
pursuant
to the Note
(based
on the
Conversion Price
[as defined
in the Note]
then in effect),
and otherwise
issuable pursuant
to the Transaction
Documents, in each
case
without giving
effect
to any limitations
on the Buyer'
ability
to convert the
Note, or
otherwise receive
shares
of Common
Stock pursuant to
the Transaction
Documents, the Company
shall amend the Registration
Statement, or file a new
Registration
Statement (on the
short form
available
therefore,
if applicable),
or both, so as
to cover
one and one-half
(1.5) times the total
number of Registrable
Securities
so issued or issuable
(without giving
effect
to any limitations
on conversion
contained
in the Note,
limitations
on exercise
contained
in the Warrants
or limitations
on conversion
or exercise
or other payment
of shares
contained
in the Securities
Purchase
Agreement)
as of the
Registration
Trigger Date,
in each
case,
as soon
as practicable,
but in any
event
within twenty
(20) days
after the Registration
Trigger Date
(based
on the Conversion
Prices
of the Note,
and other
relevant
factors on
which the
Company reasonably
elects to rely).
The Company shall
use its best efforts
to cause such amendment
and/or new
Registration
Statement to become
effective
as soon as practicable
following the filing
thereof, but in any
event
the Company shall cause
such amendment
and/or
new Registration
Statement
to become effective
within sixty
(60) days of
the Registration
Trigger
Date or as
promptly
as practicable
in the event
the Company
is required to increase
its authorized
shares.

    	4

    	 

    

 

c.
The Company shall furnish
to the Buyer
and its
legal
counsel
(i) promptly
after the
same is prepared
and publicly
distributed, filed
with the SEC, or received
by the Company,
one copy of each
Registration
Statement and
any amendment
thereto, each
preliminary
prospectus and
prospectus
and each amendment
or supplement thereto, and,
in the case of the Registration
Statement
referred
to in Section
2(a), each
letter written
by or on
behalf
of the Company to
the SEC
or the staff
of the SEC,
and each
item
of correspondence
from the
SEC or the
staff of
the SEC, in each
case relating
to such Registration
Statement
(other than
any portion of any
thereof
which contains
information for which
the Company has
sought confidential
treatment),
and (ii)
such number of
copies of
a prospectus, including
a preliminary
prospectus,
and all
amendments
and
supplements thereto
and such
other documents
as the
Buyer
may reasonably
request
in order
to facilitate
the disposition
of the Registrable
Securities
owned
by the Buyer.
The Company
will immediately
notify
the Buyer
by facsimile
of the effectiveness
of each
Registration
Statement or
any
post-effective
amendment.
The Company
will
promptly
respond to any
and all comments
received from
the SEC, with a view towards causing
each Registration
Statement or
any amendment
thereto to
be declared
effective
by the SEC as soon as
practicable
and shall
file an
acceleration
request as
soon as practicable,
but no later
than
three (3)
business days
(the "ACCELERATION
REQUEST DEADLINE"),
following the resolution or clearance
of all
SEC comments
or, if applicable,
following notification
by the SEC
that any such Registration
Statement or
any
amendment thereto
will not be subject to
review.

 

d. The
Company shall use
reasonable
efforts
to (i) register
and qualify
the Registrable
Securities
covered
by the Registration
Statements under
such other securities
or "blue sky"
laws
of such jurisdictions
in the United
States
as the
Buyer
shall request,
(ii) prepare
and file in
those jurisdictions
such amendments
(including post-effective
amendments)
and supplements
to such registrations
and qualifications
as may
be necessary
to maintain the effectiveness
thereof
during the Registration
Period, (iii) take
such other
actions
as may be necessary
to maintain such
registrations
and qualifications
in effect
at all
times during
the Registration
Period, and
(iv) take all other actions
reasonably
necessary
or advisable to qualify
the Registrable
Securities
for sale
in such jurisdictions;

 

e.
As promptly as
practicable
after becoming
aware of such event,
the Company shall notify
the Buyer
of the happening
of any event,
of which the
Company has
knowledge,
as a result of
which the
prospectus included
in any Registration
Statement,
as then in effect,
includes an untrue
statement of a
material fact
or omits to state
a material
fact required
to be stated
therein or
necessary
to make the
statements therein not
misleading,
and use
its best efforts
promptly to prepare
a supplement or
amendment to any
Registration
Statement to correct
such untrue statement
or omission,
and deliver
such number of copies
of such supplement
or amendment
to the Buyer
as the Buyer
may reasonably
request;
provided that, for not more than twenty
(20) consecutive
days
(or a total
of not more than sixty
(60) days
in any
twelve
(12) month period),
the Company may
delay
the disclosure
of material
non-public
information concerning
the Company (as
well as
prospectus
or Registration
Statement updating)
the disclosure of
which at
the time is not,
in the good
faith
opinion of the Company,
in the best
interests
of the Company (an "ALLOWED
DELAY");
provided, further,
that the Company
shall promptly (i) notify
the Buyer
in writing of the existence
of (but in no event, without the prior
written consent
of the Buyer,
shall the
Company disclose to the
Buyer
any of the
facts or
circumstances
regarding)
material non-public
information
giving
rise to an Allowed Delay
and (ii) advise
the Buyer
in writing to
cease all
sales under
such Registration
Statement
until the end
of the
Allowed Delay,
provided the above
actions
are consistent
with the requirements
of the 1933
Act and/or
1934 Act or
other applicable
law. Upon expiration
of the
Allowed Delay,
the Company shall
again
be bound by the first
sentence of this
Section
3(e) with respect
to the information giving
rise thereto.  Nothing herein
relieves
the obligations
set forth
in the Note
or the Warrants
relative to Failure
Payments
or payments
of the Default
Amount pursuant to Events
of Default.

    	5

    	 

    

 

f. The
Company shall
use its
best efforts
to prevent
the issuance
of any stop
order or other suspension of effectiveness
of any Registration
Statement, and,
if such an order
is issued, to obtain the
withdrawal
of such order
at the earliest
possible moment
and to notify the Buyer
who holds Registrable
Securities
being sold
(or, in
the event
of an
underwritten
offering,
the managing
underwriters)
of the issuance
of such order and
the resolution
thereof.

 

g.
The Company shall permit
a single firm of counsel
designated
by the Buyer
to review such Registration
Statement
and all
amendments
and supplements
thereto (as
well as
all requests
for acceleration
or effectiveness
thereof),
at Buyer’s
own cost,
a reasonable
period of time
prior to their filing with the SEC (not
less than three
(3) business days
but not more then five
(5) business
days)
and not file any
document
in a form to
which such
counsel reasonably
objects and
will not request
acceleration
of such Registration
Statement without
prior notice
to such counsel.

 

h. The
Company shall
hold in confidence
and not
make any
disclosure of information
concerning
the Buyer
provided to the
Company unless (i)
disclosure of such information
is necessary to comply
with federal
or state securities
laws, (ii) the disclosure of such information
is necessary to avoid
or correct
a misstatement
or omission
in any Registration
Statement,
(iii) the release
of such
information
is ordered
pursuant
to a subpoena
or other order
from a
court or governmental
body of competent
jurisdiction,
or (iv) such
information has
been made
generally
available
to the public
other than by
disclosure
in violation
of this
or any
other agreement.
The Company agrees
that it shall,
upon learning
that disclosure
of such
information concerning
the Buyer
is sought in
or by a court
or governmental
body of competent
jurisdiction
or through
other
means, give
prompt notice
to the Buyer
prior to
making such disclosure,
and allow
the Buyer,
at its
expense,
to undertake
appropriate
action
to prevent
disclosure of, or
to obtain a protective
order
for, such information.

 

i. The
Company shall
use its best
efforts
to (i) cause all
the Registrable
Securities
covered
by the Registration
Statement
to be listed
on each national
securities exchange
on which securities
of the same
class
or series
issued
by the Company
are then listed,
if any,
if the listing
of such Registrable
Securities
is then permitted
under the rules
of such exchange,
or (ii) to
the extent the securities
of the same class or series
are not then listed on a national
securities
exchange,
secure
the designation
and quotation,
of all the
Registrable
Securities
covered
by the Registration
Statement
on the NNM
or, if
not eligible
for the NNM
on the Nasdaq
Small Cap
or, if not
eligible
for the Nasdaq
Small Cap,
on the Over
the Counter electronic
bulletin
board  and,
without limiting
the generality
of the foregoing,
to arrange
for at least
two market makers
to register
with
FINRA as
such with respect
to such Registrable
Securities.

    	6

    	 

    

 

j. 
The Company shall
provide a
transfer
agent and
registrar,
which may
be a
single entity,
 for the Registrable
Securities
 not  later
than the effective
date of the Registration
Statement.

 

k. The
Company
shall cooperate
with the Buyer
who holds Registrable
Securities
being offered
and the
managing underwriter
or underwriters,
if any,
to facilitate
the timely preparation
and delivery
of certificates
(not bearing
any restrictive
legends) representing
Registrable
Securities
to be offered
pursuant to
such Registration
Statement and
enable
such certificates
to be in
such
denominations
or amounts,
as the
case may
be, as
the managing
underwriter
or underwriters,
if any,
or the Buyer
may reasonably
request
and registered
in such names as the managing
underwriter or
underwriters,
if any, or the Buyer
may request,
and, within 
three  (3) 
business  days
 after
 a  Registration
 Statement
 which includes
 Registrable
Securities
is ordered
effective
by the SEC, the
Company shall
deliver,
and shall cause
legal counsel
selected
by the Company
to deliver,
to the transfer
agent for
the Registrable
Securities
(with
copies to
the Buyer)
an appropriate
instruction
and an
opinion of
such
counsel
in the form
required by the
transfer
agent
in order
to issue
the Registrable
Securities
free
of restrictive
legends.

 

l. At the
request of the Buyer,
the Company shall
prepare and
file with the SEC such
amendments
(including post-effective
amendments)
and supplements
to a Registration
Statement
and any prospectus
used in connection
with the Registration
Statement as
may be necessary
in order to change
the plan of
distribution set forth
in such Registration
Statement.

 

m. 
The Company shall
not, and shall not
agree
to, allow
the holders
of any securities
of the Company to include
any of their
securities
in any
Registration
Statement under
Section
2(a) hereof
or any
amendment
or supplement
thereto under
Section
3(b) hereof
without the consent of the
Buyer
except
for securities
which have contractual
piggyback
registration
rights in
effect
at the
time of
the Closing (as
defined
in the Securities
Purchase
Agreement).
In addition,
the Company shall
not offer
any securities
for its own account
or the account
of others in any
Registration
Statement
under Section
2(a)
hereof
or any
amendment
or supplement thereto
under Section
3(b) hereof
without the
consent of the
Buyer.

 

n. The
Company shall take
all other reasonable
actions necessary
to expedite
and facilitate
disposition by
the Buyer
of Registrable
Securities
pursuant to a Registration
Statement.

 

o. 
The Company shall comply
with all applicable
laws related
to a Registration
Statement
and offering
and sale
of securities
and all
applicable
rules
and regulations
of governmental
authorities in
connection
therewith (including
without limitation
the 1933 Act
and the 1934 Act and the
rules and
regulations promulgated
by the SEC).

    	7

    	 

    

 

p. Further
Registration
Statements. 
Except for a registration
statement
filed on behalf
of the Buyer
pursuant
to Section
2 of this Agreement,
an underwritten
public offering,
and except
as set
forth on
Schedule
3(P)
hereto,
the Company
will not file
any registration
statements or amend any
already
filed registration
statement, including but not limited
to Forms S-8,
with the Commission or with state regulatory
authorities without the consent
of the Subscriber
until the expiration
of the "Exclusion
Period",
which shall
be defined
as the
sooner of
(i) the date
that the Registration
Statement
shall have
been
current
and available
for use in
connection
with the resale
of the Registrable
Securities
for a period of 180 days,
or (ii) until all
the Shares
and Warrant
Shares
have
been
resold or
transferred
by the Subscribers
pursuant to the
Registration
Statement
or are eligible
for immediate
unrestricted
resale
pursuant to
Rule 144, without
volume limitations.
The Exclusion
Period
will be tolled
during the pendency
of an
Event of Default
as defined
in the Note
or an
Event of Default
as defined
in the Warrants.

 

4. 
OBLIGATIONS
OF THE BUYER.  In
connection
with the registration
of the Registrable
Securities,
the Buyer
shall have
the following
obligations:

 

a.
It shall be a condition
precedent
to the obligations
of the Company to complete
the registration
pursuant to this
Agreement with
respect to the Registrable
Securities
of the Buyer
that the Buyer
shall furnish to the
Company such information
regarding
itself,
the Registrable
Securities
held by
it and the intended
method of disposition
of the Registrable
Securities
held by
it as shall
be reasonably
required
to effect
the registration
of such Registrable
Securities
and shall execute
such documents in connection
with such registration
as the Company
may reasonably
request. 
At  least 
three  (3) business
 days
 prior
 to  the 
first  anticipated
 filing date 
of  the Registration
Statement, the Company
shall notify the
Buyer
of the information
the Company requires
from each
the Buyer.

 

b. 
The Buyer,
by the Buyer's
acceptance
of the Registrable
Securities,
agrees to cooperate
with the Company as reasonably
requested
by the Company in connection
with the preparation
and filing
of the Registration
Statements
hereunder,
unless the Buyer
has notified
the Company in writing
of the
Buyer's
election
to exclude
all of the
Buyer's
Registrable
Securities
from the Registration
Statements.

 

c.
In the event
of an underwritten
offering pursuant
to Section
2(b) in which any
Registrable
Securities
are to
be included,
the Buyer
agrees
to enter
into and
perform
the Buyer's
obligations
under an
underwriting
agreement,
in usual and customary
form, including, without limitation,
customary
indemnification
and contribution
obligations,
with the managing
underwriter
of such
offering and
take such
other actions
as are
reasonably
required
in order
to expedite
or facilitate
the disposition
of the Registrable
Securities,
unless the Buyer
has notified
the  Company in writing
 of 
the Buyer's
 election
to exclude
 all 
of  the
 Buyer's
 Registrable
Securities
from such Registration
Statement.

 

d. The
Buyer
agrees that,
upon receipt
of any notice
from the
Company of the happening
of any event
of the kind
described
in Section
3(f) or
3(g),
the Buyer
will immediately
discontinue disposition of Registrable
Securities
pursuant
to the Registration
Statement covering
such  Registrable
 Securities
 until the 
Buyer's
 receipt
 of  the 
copies  of 
the  supplemented
 or amended
prospectus contemplated
by Section
3(f) or 3(g)
and, if so directed by the Company,
the Buyer
shall deliver
to the Company (at
the expense
of the Company)
or destroy (and
deliver
to the  Company a 
certificate
 of  destruction)
 all copies
 in the Buyer's
possession, of  the prospectus
covering
such Registrable
Securities
current
at the time of
receipt
of such notice.

 

    	8

    	 

    

 

e.
No Buyer
may participate
in any
underwritten
registration
hereunder
unless the Buyer
(i) agrees
to sell
the Buyer's
Registrable
Securities
on the basis
provided in any
underwriting
arrangements
in usual and
customary
form entered
into by the
Company, (ii) completes
and executes
all questionnaires,
powers of
attorney,
indemnities,
underwriting agreements
and other documents
reasonably
required under
the terms
of such underwriting
arrangements,
and (iii)
agrees to pay
its pro
rata
share of
all underwriting
discounts and commissions
and any
expenses
in excess
of those payable
by the Company
pursuant to Section
5 below.

 

5.
EXPENSES
OF REGISTRATION.
All reasonable
expenses,
other than underwriting
discounts and
commissions,
incurred
in connection
with registrations,
filings or qualifications
pursuant to
Sections
2 and
3, including,
without limitation,
all registration,
listing and
qualification
fees, printers
and accounting
fees,
the fees
and disbursements
of counsel
for the Company
shall be borne
by the Company.

 

6. INDEMNIFICATION.
In the event
any Registrable
Securities
are included
in a Registration
Statement under
this Agreement:

 

a.
 To the extent
permitted
by law,
the Company will
indemnify, hold harmless
and defend
(i) the Buyer,
(ii) the directors,
officers,
partners, managers,
members, employees,
agents
and each
person who
controls
any Buyer
within the meaning
of the
1933 Act or
the Securities
Exchange
Act of
1934, as amended
(the "1934 ACT"),
if any,
(iii) any underwriter
(as defined
in the 1933 Act)
for the Buyer
in connection
with an
underwritten
offering pursuant
to Section
2(b) hereof,
and (iv) the directors,
officers,
partners, employees
and each
person who controls
any such
underwriter
within the
meaning of
the 1933 Act
or the 1934
Act, if any
(each, an
"INDEMNIFIED
PERSON"),
against
any joint or
several
losses, claims,
damages,
liabilities
or expenses
(collectively,
together
with actions,
proceedings
or inquiries
by any
regulatory
or self- regulatory
organization,
whether commenced
or threatened, in respect
thereof,
"CLAIMS")
to which any
of them may become
subject insofar
as such Claims
arise out of
or are
based upon: (i) any
untrue statement
or alleged
untrue statement
of a material
fact in
a Registration
Statement or the
omission
or alleged
omission
to state
therein a
material
fact
required
to be stated or
necessary
to make the statements
therein not misleading;
(ii) any
untrue statement
or alleged
untrue statement of a
material fact
contained in any
preliminary
prospectus
if used prior to the
effective
date of such Registration
Statement, or contained
in the final prospectus
(as amended
or supplemented,
if the Company
files any amendment
thereof
or supplement
thereto with
the SEC) or
the omission
or alleged
omission to state
therein any
material
fact
necessary
to make the statements
made therein, in
light
of the circumstances
under which
the statements
therein were
made, not
misleading;
or (iii)
any violation
or alleged
violation
by the Company
of the
1933 Act, the 1934 Act,
any
other
law, including, without limitation,
any
state securities
law, or any
rule or regulation
thereunder
relating
to the offer
or sale
of the Registrable
Securities
(the matters
in the foregoing
clauses (i) through
(iii) being,
collectively,
"VIOLATIONS").
Subject to the restrictions
set forth in Section
6(c) with respect
to the number of legal
counsel, the Company
shall reimburse
the Indemnified
Person,
promptly as
such
expenses
are
incurred
and are
due and
payable,
for any reasonable
legal
fees or other
reasonable
expenses
incurred
by them in connection
with investigating
or defending
any such
Claim.  Notwithstanding anything
to the contrary
contained
herein,
the indemnification
agreement
contained
in this
Section
6(a): (i)
shall not apply
to a Claim arising out of or based
upon a Violation which occurs
in reliance
upon and in conformity
with information furnished in writing
to the Company by any
Indemnified
Person or
underwriter
for such
Indemnified
Person
expressly
for use
in connection
with the preparation
of such Registration
Statement or
any such
amendment thereof
or supplement
thereto; (ii)
shall not apply to amounts
paid in settlement
of any Claim if such
settlement
is effected
without the prior written
consent of
the Company, which
consent shall not be unreasonably
withheld; and (iii) with respect
to any preliminary
prospectus,
shall not inure
to the benefit
of any
Indemnified
Person 
if  the  untrue statement
 or  omission
 of  material
 fact
 contained
 in  the 
preliminary
prospectus
was corrected
on a timely
basis in
the prospectus,
as then
amended
or supplemented,
such corrected
prospectus
was timely made
available
by the Company
pursuant to Section
3(c) hereof,
and the Indemnified
Person
was promptly
advised in writing
not to use the incorrect
prospectus
prior to
the use giving
rise to a
Violation and
such Indemnified
Person, notwithstanding
such advice,
used it.
Such indemnity
shall remain
in full force
and effect
regardless
of any investigation
made by or
on behalf
of the Indemnified
Person
and shall
survive the transfer of
the Registrable
Securities
by the
Buyer
pursuant to Section
9.

    	9

    	 

    

 

b. [Intentionally
Omitted].

 

c.
 Promptly
after
receipt by
an Indemnified
Person
under this
Section
6 of notice
of the commencement
of any
action
(including
any governmental
action),
such Indemnified
Person
shall, if Claim in respect thereof
is to be made
against
any the
Company under
this Section
6, deliver
to the Company
a written
notice
of the commencement
thereof,
and the
Company shall have the right
to participate
in, and,
to the extent
the Company so
desires,
to assume
control of the
defense
thereof
with counsel
mutually
satisfactory
to the Company
and the Indemnified
Person, as
the case
may be.

 

PROVIDED,
HOWEVER,
that an
Indemnified
Person
shall have the
right to retain
its own counsel
with the fees
and expenses
to be paid by
the Company,
if, in the reasonable
opinion of counsel
retained by the
Company, the representation
by such counsel
of the Indemnified
Person
and the
Company would be inappropriate
due to actual
or potential
differing interests
between such
Indemnified
Person
and any
other
party represented
by such counsel
in such proceeding.
The Company
shall pay for
only one separate
legal counsel
for the Indemnified
Persons,
and such
legal
counsel
shall be
selected
by Buyer,
if the
Buyer
is entitled
to indemnification hereunder.
 The
failure
to deliver
written notice
to the Company
within a reasonable
time of
the commencement
of any such
action shall not relieve
the Company of
any liability
to the Indemnified
Person
under this
Section
6, except
to the extent
that the Company
is actually prejudiced
in its ability
to defend
such action.
The indemnification
required
by this Section
6 shall be made by periodic
payments of the amount
thereof during the course of the investigation
or defense, as
such expense,
loss, damage
or liability
is incurred
and is due and payable.

d. To the
extent permitted
by law,
the Buyer
will
indemnify, hold
harmless
and defend
(i) the Company,
and (ii) the directors,
officers, partners,
managers,
members, employees,
or agents of the Company,
if any (each,
a  "COMPANY
INDEMNIFIED
PERSON"),
against any
joint or
several
losses, claims,
damages,
liabilities
or expenses
(collectively,
together
with actions, proceedings
or inquiries
by any
regulatory
or self-regulatory
organization,
whether commenced
or threatened,
in respect
thereof,
"CLAIMS")
to which any of them may
become subject
insofar as such
Claims arise out of or are based
upon a Claim arising out of or based
upon any
violation
or alleged
violation
by the Company
of the
1933 Act, the
1934 Act, any
other law, including,
without limitation,
any state
securities
law, or
any rule
or regulation thereunder
relating to the
offer
or sale
of the Registrable
Securities,
which occurs
due to the
inclusion by the Company
in a Registration
Statement
of false
or misleading
information
about the Buyer,
where such
information was
furnished in writing
to the Company
by the Buyer
for the
purpose of inclusion in such
Registration
Statement.

 

7.
CONTRIBUTION. To the
extent
any indemnification
by the
Company is prohibited
or limited by
law, the Company agrees
to make the maximum contribution
with respect to any
amounts for which
it would otherwise be liable
under Section
6 to the fullest extent
permitted
by law.

    	10

    	 

    

 

8.
 REPORTS
UNDER THE 1934 ACT. 
With a view
to making available
to the Buyer
the benefits
of Rule
144 promulgated
under
the 1933 Act
or any
other
similar
rule or regulation
of the SEC
that
may at
any
time permit
the Buyer
to sell securities
of the Company
to the public without registration
("RULE
144"), the
Company agrees
to:

 

a.
make and keep
public information available,
as those terms
are understood
and defined
in Rule 144;

 

b. file
with the SEC
in a timely
manner
all reports
and other documents
required of the Company
under
the 1933 Act and
the 1934 Act
so long as the Company
remains subject
to such requirements
(it being
understood that
nothing herein
shall limit
the Company's
obligations
under Section
4(c)
of the Securities
Purchase
Agreement)
and the
filing of such reports
and other documents
is required for
the applicable
provisions of Rule 144; and

 

c.
 furnish
to the Buyer
so long
as the
Buyer
owns Registrable
Securities,
promptly
upon request, (i) a written
statement by the Company
that it has complied
with the reporting requirements
of Rule 144,
the 1933 Act
and
the 1934 Act, (ii)
a copy of the most recent
annual
or quarterly
report
of the Company
and such
other reports
and documents
so filed by the Company,
and (iii)
such other information
as may
be reasonably
requested
to permit
the Buyers
to sell such securities
pursuant to Rule 144 without
registration.

 

9.
ASSIGNMENT
OF REGISTRATION
RIGHTS. The
rights
under this Agreement
shall
be automatically
assignable
by the
Buyers
to any
transferee
of all
or any
portion of Registrable
Securities
if: (i) the
Buyer
agrees
in writing
with the transferee
or assignee
to assign
 such
 rights,
and  a 
copy  of 
such 
agreement
 is furnished 
to the  Company
within  a reasonable
time after
such assignment,
(ii) the Company
is, within a
reasonable
time after
such transfer 
or  assignment,
 furnished 
with  written
 notice
 of  (a)
 the  name
 and 
address 
of  such transferee
or assignee,
and (b) the securities
with respect
to which
such registration
rights
are being
transferred
or assigned,
(iii) following such
transfer or assignment,
the further disposition
of such securities
by the transferee
or assignee
is restricted
under the 1933
Act and
applicable
state securities
laws, (iv)
at or
before
the time the Company
receives
the written notice
contemplated
by clause (ii)
of this sentence,
the transferee
or assignee
agrees
in writing
with the Company to be bound by
all of the
provisions contained
herein, and
(v) such
transfer
shall have been made
in accordance
with the applicable
requirements
of the Securities
Purchase
Agreement. In
the event
that the Buyer
transfers
all or any portion
of its Registrable
Securities
pursuant to
this Section,
the Company shall
have
at least
ten (10) days
to file
any amendments
or supplements necessary
to keep the Registration
Statement current
and effective
pursuant to Rule 415, and the
commencement
date of
any Event
of Failure
or Event of
Default
under the
Note or the Warrants
caused
thereby
will be extended
by ten
(10) days.

 

10.
 AMENDMENT
OF REGISTRATION
RIGHTS. 
Provisions of
this Agreement
may be
amended
and the
observance
thereof
may be
waived (either
generally
or in a
particular instance
and either
retroactively
or prospectively),
only with written
consent
of the Company,
the Buyer
(to the extent such
Buyer
still owns Registrable
Securities)
and Buyers
who hold a majority interest
of the Registrable
Securities.
Any amendment
or waiver
effected
in accordance
with this Section
10 shall be
binding upon the
Buyer
and the Company.

    	11

    	 

    

 

11. MISCELLANEOUS.

 

a.
A person or
entity
is deemed to be
a holder of Registrable
Securities
whenever
such person
or entity
owns of
record
such
Registrable
Securities.
If the
Company receives conflicting
instructions,
notices
or elections
from two or
more persons
or entities
with respect
to the same
Registrable
Securities,
the Company shall
act upon
the basis of
instructions,
notice
or election
received from the registered
owner of such
Registrable
Securities.

 

b. Any
notices required
or permitted
to be given under
the terms hereof
shall be sent by
certified
or registered
mail (return
receipt
requested)
or delivered
personally
or by courier
(including a recognized
overnight delivery
service)
or by facsimile
and shall be effective
five days after
being placed
in the
mail, if mailed
by regular United
States
mail,
or upon receipt,
if delivered
personally
or by courier
(including a
recognized
overnight
delivery
service)
or by facsimile,
in each case
addressed to a
party.
The addresses
for such
communications
shall be:

 

If
to the Company:
To the address set
forth immediately
below such
Company’s name
on the signature
pages hereto.

 

With
copy to:

________, Esq.

Telephone:

Facsimile:

 

If
to a Buyer:
To the address
set forth immediately
below such
Buyer's
name on the signature
pages
hereto.

 

Each
party
shall
provide notice
to the other
party
of any change
in address.

 

c.
 Failure
of any party
to exercise
any right
or remedy under
this Agreement
or otherwise, or
delay by a party
in exercising
such right or
remedy,
shall not operate
as a waiver
thereof.

 

d. This
Agreement
shall be
governed
by and construed
in accordance
with the internal
laws of
the State
of New
York.  Any
controversy
or claim
arising out
of or related
to this Agreement
or the breach
thereof,
shall be settled
by binding arbitration
in New
York, NY in accordance
with the Expedited
Procedures
(Rules 53-57)
of the Commercial
Arbitration
Rules of the American
Arbitration
Association (“AAA”).
 A proceeding
shall be commenced
upon written
demand by Company
or the Buyer
to the other. The arbitrator(s)
shall enter a judgment
by default against
any party,
which fails
or refuses
to appear
in any properly
noticed
arbitration
proceeding.
The proceeding
shall be conducted
by one
(1) arbitrator,
unless the amount
alleged
to be in
dispute exceeds
two hundred fifty
thousand dollars
($250,000), in
which case
three
(3) arbitrators shall preside.
The arbitrator(s)
will be chosen by
the parties from
a list provided
by the AAA,
and if
they are
unable to
agree
within ten
(10) days,
the AAA shall
select
the arbitrator(s).
The arbitrators
must be experts
in securities
law and financial
transactions.
The arbitrators
shall assess
costs
and expenses
of the arbitration,
including all
attorneys’
and experts’
fees,
as the
arbitrators
believe
is appropriate
in light
of the merits
of the parties’
respective
positions in the issues
in dispute. Each
party
submits irrevocably
to the jurisdiction
of any
state court sitting
in New York,
NY or to the United States District
Court sitting
in New York for purposes
of enforcement
of any discovery
order,
judgment or
award
in connection
with such arbitration.
The award
of the
arbitrator(s)
shall be final
and binding
upon the parties
and may be enforced
in any court
having
jurisdiction.
The arbitration
shall be
held in such
place as set
by the arbitrator(s)
in accordance
with Rule 55. With respect
to any arbitration
proceeding
in accordance
with this
section,
the prevailing
party’s
reasonable
attorney’s
fees
and expenses
shall be borne
by the non-prevailing
party.

    	12

    	 

    

 

Although
the parties,
as expressed
above,
agree that
all claims,
including claims
that are equitable
in nature,
for example
specific performance,
shall initially
be prosecuted
in the binding
arbitration
procedure
outlined above,
if the arbitration
panel
dismisses
or otherwise
fails
to entertain any
or all
of the equitable
claims asserted
by reason
of the
fact that it lacks jurisdiction,
power and/or
authority to consider
such claims and/or
direct the remedy
requested,
then, in only that event,
will the parties
have the
right to
initiate
litigation
respecting
such equitable
claims or remedies.
The forum
for such equitable
relief
shall be in
either
a state or federal
court sitting
in New York,
NY. Each
party
waives
any right
to a trial by jury,
assuming
such right
exists
in an equitable
proceeding,
and
irrevocably
submits to
the jurisdiction
of said New
York court.
New York
law shall govern
both the proceeding
as well
as the interpretation
and construction
of this Agreement
and the transaction
as a whole.

 

e.
 This Agreement
and the
Securities
Purchase
Agreement
(including
all schedules
and exhibits
thereto) constitute
the entire
agreement
among the parties
hereto
with respect
to the subject matter
hereof and
thereof.
There
are no restrictions,
promises, warranties
or undertakings,
other than those set
forth or
referred
to herein
and therein.
This Agreement
and the
Securities
Purchase
Agreement
supersede
all prior
agreements
and understandings
among the
parties hereto
with respect to
the subject matter
hereof
and thereof.

 

f. 
Subject
to the requirements
of Section
9 hereof,
this Agreement
shall inure to
the benefit of and
be binding
upon the successors and
assigns
of each of
the parties
hereto.

 

g.
The headings
in this
Agreement are
for convenience
of reference
only and
shall not limit
or otherwise affect
the meaning
hereof.

 

h. This
Agreement may
be executed
in two or more counterparts,
each
of which shall be deemed
an original
but all
of which
shall constitute
one and the
same agreement.
This Agreement, once
executed
by a party,
may be
delivered
to the other party
hereto
by facsimile
transmission
of a copy of this Agreement
bearing
the signature
of the party so delivering
this Agreement.

 

i. Each
party
shall do and perform,
or cause to be done and
performed,
all such further
acts and
things,
and shall
execute
and deliver
all such other
agreements,
certificates,
instruments
and documents,
as the other
party may
reasonably request
in order
to carry
out the intent
and accomplish
the purposes
of this Agreement
and the consummation
of the transactions
contemplated hereby.

 

j. Except
as otherwise
provided herein,
all consents
and other determinations
to be made by
the Buyer
pursuant
to this Agreement
shall be
made by Buyers
holding a
majority
of the Registrable
Securities,
determined
as if
the all
of the Note
and Warrants
then
outstanding have
been converted
or exercised
into for Registrable
Securities.

    	13

    	 

    

 

k. The
Company acknowledges
that a
breach
by it of
its obligations
hereunder
will cause irreparable
harm to the
Buyer
by vitiating
the intent
and purpose
of the transactions
contemplated 
hereby.
 Accordingly,
 the  Company acknowledges
 that  the 
remedy at
 law  for breach
of its obligations
hereunder
will be inadequate
and agrees,
in the event
of a breach
or threatened
breach
by the Company
of any of
the provisions
hereunder,
that the
Buyer
shall be entitled,
in addition
to all other available
remedies
in law or
in equity,
to an injunction
or injunctions
to prevent
or cure breaches
of the provisions
of this Agreement
and to
enforce
specifically
the terms and
provisions hereof,
without the necessity
of showing
economic
loss and without any
bond or other security
being
required.

 

l. The
language used in this
Agreement
will be deemed to be the
language
chosen by the
parties to express
their mutual
intent, and
no rules of strict construction
will be applied
against
any party.

 

m. In
the event that any
provision of this
Agreement is invalid or unenforceable
under any
applicable
statute or rule of law,
then such provision shall be deemed
inoperative
to the extent that it may
conflict therewith
and shall be deemed modified
to conform with such statute
or rule of
law. Any provision
hereof
which may prove
invalid or unenforceable
under any
law shall not affect
the validity
or enforceability
of any
other provision
hereof.

 

n. The
initial
number of Registrable
Securities
included in any
Registration
Statement
and each
increase
to the number of
Registrable
Securities
included therein
shall be allocated
pro rata
among the Buyers
based on the
number of Registrable
Securities
held by the Buyer
at the time
of such establishment
or increase,
as the
case may
be.
In the
event an
Buyer
shall sell or otherwise transfer
any of such
holder's Registrable
Securities,
each transferee
shall be allocated
a pro
rata portion
of the number
of Registrable
Securities
included in
a Registration
Statement for
such transferor.
Any shares
of Common
Stock included
on a Registration
Statement and
which remain allocated
 to any 
person  or 
entity
which does not hold any
Registrable
Securities
shall
be allocated
to the remaining Buyers,
pro rata
based on
the number of shares of
Registrable
Securities
then held by
the Buyers.
For the
avoidance
of doubt, the number of
Registrable
Securities
held by a
Buyer
shall be determined
as if
all the Note
and Warrants
then outstanding
and held
by a Buyer
were converted
into or
exercised
for Registrable
Securities,
without regard
to any limitation
on the Buyer's
ability
to convert
the Note or
exercise
the Warrants.

 

o. There
shall be no oral
modifications
or amendments to this
Agreement.
This Agreement may
be modified
or amended
only in writing.

 

    	14

    	 

    

 

IN
 WITNESS
 WHEREOF,
 the  undersigned
 Buyer
 and 
the  Company
have 
caused  this
Agreement to be duly executed
as of the ___th day
of December,
2012.

 

COMPANY:

 

NYXIO
TECHNOLOGIES
CORP

 

By:
/s/ Giorgio Johnson

Giorgio Johnson

 

ADDRESS:

 

2156 NE
Broadway

Portland,
Oregon
97232

Phone:
855-436-6996

Fax:

 

BUYER:

 

CONTINENTAL EQUITIES
LLC

 

 

By:
/s/ Continental Equities LLC

 

 

ADDRESS:

 

888 7TH
Avenue

New
York,
NY 10106

Phone:
212-292-7455

Fax:

    	15

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