Document:

Exhibit 10.1

 

PURCHASE AGREEMENT

 

 

THIS PURCHASE AGREEMENT
(this “Agreement”) is made as of the 28th day of September 2012 by and among Precision Optics Corporation, Inc., a
Massachusetts corporation (the “Company”), and the Investors set forth on the signature pages affixed hereto (each
an “Investor” and collectively the “Investors”).

 

Recitals

 

A.     The Company and
the Investors are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded
by the provisions of Regulation D (“Regulation D”), as promulgated by the U.S. Securities and Exchange Commission (the
“SEC”) under the Securities Act of 1933, as amended; and

 

B.     The Investors
wish to purchase from the Company, and the Company wishes to sell and issue to the Investors, upon the terms and conditions stated
in this Agreement, (i) an aggregate of 2,777,795 shares of the Company’s common stock, par value $0.01 per share (together
with any securities into which such shares may be reclassified, whether by merger, charter amendment or otherwise, the “Common
Stock”), at a purchase price of $0.90 per share, and (ii) warrants to purchase an aggregate of 1,944,475 shares of Common
Stock (subject to adjustment as provided therein) at an exercise price of $1.25 per share (subject to adjustment as provided therein)
in the form attached hereto as Exhibit A (the “Warrants”); and

 

C.     Contemporaneous
with the sale of the Shares and the Warrants, the parties hereto will 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 certain registration rights under the Securities Act of 1933, as amended, and the rules and regulations promulgated
thereunder, and applicable state securities laws.

 

In consideration of the
mutual promises made herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

 

1.     Definitions.
In addition to those terms defined above and elsewhere in this Agreement, for the purposes of this Agreement, the following terms
shall have the meanings set forth below:

 

“Affiliate”
means, with respect to any Person, any other Person which directly or indirectly through one or more intermediaries Controls, is
controlled by, or is under common control with, such Person.

 

“Business Day”
means a day, other than a Saturday or Sunday, on which banks in New York City are open for the general transaction of business.

 

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

 

“Company’s
Knowledge” means the actual knowledge of the executive officers (as defined in Rule 405 under the 1933 Act) of the Company,
after due inquiry.

 

“Confidential
Information” means trade secrets, confidential information and know-how (including but not limited to ideas, formulae,
compositions, processes, procedures and techniques, research and development information, computer program code, performance specifications,
support documentation, drawings, specifications, designs, business and marketing plans, and customer and supplier lists and related
information).

 

“Control”
(including the terms “controlling”, “controlled by” or “under common control with”) means the
possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether
through the ownership of voting securities, by contract or otherwise.

 

“Effective Date”
means the date on which the initial Registration Statement is declared effective by the SEC.

 

“Effectiveness
Deadline” means the date on which the initial Registration Statement is required to be declared effective by the SEC
under the terms of the Registration Rights Agreement.

 

“Intellectual
Property” means all of the following: (i) patents, patent applications, patent disclosures and inventions (whether or
not patentable and whether or not reduced to practice); (ii) trademarks, service marks, trade dress, trade names, corporate names,
logos, slogans and Internet domain names, together with all goodwill associated with each of the foregoing; (iii) copyrights and
copyrightable works; (iv) registrations, applications and renewals for any of the foregoing; and (v) proprietary computer software
(including but not limited to data, data bases and documentation).

 

“Material Adverse
Effect” means a material adverse effect on (i) the assets, liabilities, results of operations, condition (financial or
otherwise), business, or prospects of the Company and its Subsidiaries taken as a whole, or (ii) the ability of the Company to
perform its obligations under the Transaction Documents.

 

“Person” means an
individual, corporation, partnership, limited liability company, trust, business trust, association, joint stock company, joint
venture, sole proprietorship, unincorporated organization, governmental authority or any other form of entity not specifically
listed herein.

 

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“Purchase Price”
means Two Million Five Hundred Thousand Dollars ($2,500,000).

 

“Registration
Statement” has the meaning set forth in the Registration Rights Agreement.

 

“Required Investors”
has the meaning set forth in the Registration Rights Agreement.

 

“SEC Filings”
has the meaning set forth in Section 4.6.

 

“Securities”
means the Shares, the Warrants and the Warrant Shares.

 

“Shares” means the shares
of Common Stock to be purchased by the Investors hereunder.

 

“Subsidiary”
of any Person means another Person, an amount of the voting securities, other voting ownership or voting partnership interests
of which is sufficient to elect at least a majority of its Board of Directors or other governing body (or, if there are no such
voting interests, 50% or more of the equity interests of which) is owned directly or indirectly by such first Person.

 

“Transaction Documents”
means this Agreement, the Warrants and the Registration Rights Agreement.

 

“Warrant Shares”
means the shares of Common Stock issuable upon the exercise of the Warrants.

 

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

 

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

 

2.     Purchase and Sale of the Shares and
Warrants. Subject to the terms and conditions of this Agreement, on the Closing Date (as defined in Section 3), each of the
Investors shall severally, and not jointly, purchase, and the Company shall sell and issue to the Investors, the Shares and the
Warrants in the respective amounts set forth opposite the Investors’ names on the signature pages attached hereto in exchange
for the Purchase Price, as further specified in Section 3 below.

 

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3.     Closing. Unless other arrangements
have been made with a particular Investor, upon confirmation that the other conditions to Closing (as defined hereinafter) specified
herein have been satisfied or duly waived by the Investors, the Company shall deliver to Lowenstein Sandler PC, in trust, a certificate
or certificates, registered in such name or names as the Investors may designate, representing the Shares and the Warrants with
instructions that such certificates are to be held for release to the Investors only upon payment in full of the Purchase Price
to the Company by all the Investors. Unless other arrangements have been made with a particular Investor, upon such receipt by
Lowenstein Sandler PC of the certificates, each Investor shall promptly, but no more than one Business Day thereafter, cause a
wire transfer in same day funds to be sent to the account of the Company as instructed in writing by the Company, in an amount
representing such Investor’s pro rata portion of the Purchase Price as set forth on the signature pages to this Agreement.
On the date (the “Closing Date”) the Company receives the Purchase Price, the certificates evidencing the Shares and
the Warrants shall be released to the Investors (the “Closing”). The Closing of the purchase and sale of the Shares
and the Warrants shall take place at the offices of Lowenstein Sandler PC, 1251 Avenue of the Americas, 18th Floor, New York,
New York 10020, or at such other location and on such other date as the Company and the Investors shall mutually agree.

 

4.     Representations and Warranties of
the Company. The Company hereby represents and warrants to the Investors that, except as set forth in the schedules delivered
herewith (collectively, the “Disclosure Schedules”):

 

4.1     Organization, Good Standing and
Qualification. Each of the Company and its Subsidiaries is a corporation duly organized, validly existing and in good standing
under the laws of the jurisdiction of its incorporation and has all requisite corporate power and authority to carry on its business
as now conducted and to own or lease its properties. Each of the Company and its Subsidiaries is duly qualified to do business
as a foreign corporation and is in good standing in each jurisdiction in which the conduct of its business or its ownership or
leasing of property makes such qualification or leasing necessary unless the failure to so qualify has not had and could not reasonably
be expected to have a Material Adverse Effect. The Company’s Subsidiaries are listed on Schedule 4.1 hereto.

 

4.2     Authorization. The Company
has full power and authority and has taken all requisite action on the part of the Company, its officers, directors and stockholders
necessary for (i) the authorization, execution and delivery of the Transaction Documents, (ii) the authorization of the performance
of all obligations of the Company hereunder or thereunder, and (iii) the authorization, issuance (or reservation for issuance)
and delivery of the Securities. When delivered in accordance with the terms hereof, the Transaction Documents will constitute the
legal, valid and binding obligations of the Company, enforceable against the Company in accordance with their terms, subject to
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability, relating to
or affecting creditors’ rights generally and to general equitable principles.

 

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4.3     Capitalization. The issued and
outstanding shares of Common Stock have been duly authorized and validly issued, are fully paid and nonassessable, have been issued
in compliance with all federal and state securities laws, were not issued in violation of or subject to any preemptive rights
or other rights to subscribe for or purchase securities, and conform in all material respects to the description thereof contained
in the Company’s filings with the SEC. Except as set forth in the Company’s SEC Filings and except for options and
other awards that may be granted under the Company’s Amended and Restated 1997 Incentive Plan, the Company’s 2006
Equity Incentive Plan or the Company’s 2011 Equity Incentive Plan, the Company does not have outstanding any options to
purchase, or any preemptive rights or other rights to subscribe for or to purchase, any securities or obligations convertible
into, or any contracts or commitments to issue or sell, shares of its capital stock or any such options, rights, convertible securities
or obligations. Except as contemplated by this Agreement, neither the Company nor any of its Subsidiaries is currently in negotiations
for the issuance of any equity securities of any kind. Except as described on Schedule 4.3 and except for the Registration
Rights Agreement, there are no voting agreements, buy-sell agreements, option or right of first purchase agreements or other agreements
of any kind among the Company and any of the securityholders of the Company relating to the securities of the Company held by
them. Except as described on Schedule 4.3 and except as provided in the Registration Rights Agreement, no Person has the
right to require the Company to register any securities of the Company under the 1933 Act, whether on a demand basis or in connection
with the registration of securities of the Company for its own account or for the account of any other Person.

 

Except as described on
Schedule 4.3, the issuance and sale of the Securities hereunder will not obligate the Company to issue shares of Common
Stock or other securities to any other Person (other than the Investors) and will not result in the adjustment of the exercise,
conversion, exchange or reset price of any outstanding security.

 

Except as described on
Schedule 4.3, the Company does not have outstanding stockholder purchase rights or “poison pill” or any similar
arrangement in effect giving any Person the right to purchase any equity interest in the Company upon the occurrence of certain
events.

 

4.4     Valid Issuance. The Shares have
been duly and validly authorized and, when issued and paid for pursuant to this Agreement, will be validly issued, fully paid
and nonassessable, and shall be free and clear of all encumbrances and restrictions (other than those created by the Investors),
except for restrictions on transfer set forth in the Transaction Documents or imposed by applicable securities laws. The Warrants
have been duly and validly authorized. Upon the due exercise of the Warrants, the Warrant Shares will be duly and validly authorized
and validly issued, fully paid and non-assessable free and clear of all encumbrances and restrictions, except for restrictions
on transfer set forth in the Transaction Documents or imposed by applicable securities laws and except for those created by the
Investors. The Company has reserved a sufficient number of shares of Common Stock for issuance upon the exercise of the Warrants,
free and clear of all encumbrances and restrictions, except for restrictions on transfer set forth in the Transaction Documents
or imposed by applicable securities laws and except for those created by the Investors.

 

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4.5     Consents. The
execution, delivery and performance by the Company of the Transaction Documents and the offer, issuance and sale of the
Securities require no consent of, action by or in respect of, or filing with, any Person, governmental body, agency, or official
other than filings that have been made pursuant to applicable state securities laws and post-sale filings pursuant to applicable
state and federal securities laws which the Company undertakes to file within the applicable time periods. Subject to the accuracy
of the representations and warranties of each Investor set forth in Section 5 hereof, the Company has taken all action necessary
to exempt (i) the issuance and sale of the Securities, (ii) the issuance of the Warrant Shares upon due exercise of the Warrants,
and (iii) the other transactions contemplated by the Transaction Documents from the provisions of any stockholder rights plan
or other “poison pill” arrangement, any anti-takeover, business combination or control share law or statute binding
on the Company or to which the Company or any of its assets and properties may be subject and any provision of the Company’s
Articles of Organization or Bylaws, as in effect as of the date hereof (the “Bylaws”), that is or could reasonably
be expected to become applicable to the Investors as a result of the transactions contemplated hereby, including without limitation,
the issuance of the Securities and the ownership, disposition or voting of the Securities by the Investors or the exercise of
any right granted to the Investors pursuant to this Agreement or the other Transaction Documents.

 

4.6     Delivery of SEC Filings; Business.
The Company has made available to the Investors through the EDGAR system, true and complete copies of the Company’s most
recent Annual Report on Form 10-K for the fiscal year ended June 30, 2011 (the “10-K”), and all other reports filed
by the Company pursuant to the 1934 Act since the filing of the 10-K and prior to the date hereof (collectively, the “SEC
Filings”). The SEC Filings are the only filings required of the Company pursuant to the 1934 Act for such period. The Company
and its Subsidiaries are engaged in all material respects only in the business described in the SEC Filings and the SEC Filings
contain a complete and accurate description in all material respects of the business of the Company and its Subsidiaries, taken
as a whole.

 

4.7     Use of Proceeds. The net proceeds
of the sale of the Shares and the Warrants hereunder shall be used by the Company for working capital and general corporate purposes.

 

4.8     No Material Adverse Change.
Since June 30, 2012, except as identified and described in the SEC Filings or as described on Schedule 4.8, there has not
been:

 

(i)     any change in the consolidated assets,
liabilities, financial condition or operating results of the Company from that reflected in the financial statements included in
the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2012, except for changes in the ordinary course
of business which have not had and could not reasonably be expected to have a Material Adverse Effect, individually or in the aggregate;

 

(ii)     any declaration or payment of any
dividend, or any authorization or payment of any distribution, on any of the capital stock of the Company, or any redemption or
repurchase of any securities of the Company;

 

(iii)     any material damage, destruction
or loss, whether or not covered by insurance to any assets or properties of the Company or its Subsidiaries;

 

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(iv)     any waiver, not in the ordinary
course of business, by the Company or any Subsidiary of a material right or of a material debt owed to it;

 

(v)     any satisfaction or discharge of
any lien, claim or encumbrance or payment of any obligation by the Company or a Subsidiary, except in the ordinary course of business
and which is not material to the assets, properties, financial condition, operating results or business of the Company and its
Subsidiaries taken as a whole (as such business is presently conducted and as it is proposed to be conducted);

 

(vi)     any change or amendment to the
Company's Articles of Organization or Bylaws, or material change to any material contract or arrangement by which the Company or
any Subsidiary is bound or to which any of their respective assets or properties is subject;

 

(vii)     any material labor difficulties
or labor union organizing activities with respect to employees of the Company or any Subsidiary;

 

(viii)     any material transaction entered
into by the Company or a Subsidiary other than in the ordinary course of business;

 

(ix)     the loss of the services of any
key employee, or material change in the composition or duties of the senior management of the Company or any Subsidiary;

 

(x)     the loss or, to the Company’s
Knowledge, threatened loss of any customer which has had or could reasonably be expected to have a Material Adverse Effect; or

 

(xi)     any other event or condition of
any character that has had or could reasonably be expected to have a Material Adverse Effect.

 

4.9     SEC Filings.

 

(a)     At the time of filing thereof, the
SEC Filings complied as to form in all material respects with the requirements of the 1934 Act and did not contain any untrue statement
of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements
made therein, in the light of the circumstances under which they were made, not misleading.

 

(b)     Each registration statement and
any amendment thereto filed by the Company since January 1, 2010 pursuant to the 1933 Act and the rules and regulations thereunder,
as of the date such statement or amendment became effective, complied as to form in all material respects with the 1933 Act and
did not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary
in order to make the statements made therein not misleading; and each prospectus filed pursuant to Rule 424(b) under the 1933 Act,
as of its issue date and as of the closing of any sale of securities pursuant thereto did not contain any untrue statement of a
material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements made
therein, in the light of the circumstances under which they were made, not misleading.

 

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4.10     No Conflict, Breach, Violation
or Default. The execution, delivery and performance of the Transaction Documents by the Company and the issuance and sale
of the Securities will not conflict with or result in a breach or violation of any of the terms and provisions of, or constitute
a default under (i) the Company’s Articles of Organization or the Company’s Bylaws, both as in effect on the date
hereof (true and complete copies of which have been filed with the SEC and made available to the Investors through EDGAR), (ii)
any statute, rule, regulation or order of any governmental agency or body or any court, domestic or foreign, having jurisdiction
over the Company, any Subsidiary or any of their respective assets or properties, or (iii) any agreement or instrument to which
the Company or any Subsidiary is a party or by which the Company or a Subsidiary is bound or to which any of their respective
assets or properties is subject, except, in the case of clauses (ii) and (iii) only, such breaches, violations or defaults that
individually or in the aggregate would not cause a Material Adverse Effect.

 

4.11     Tax Matters. The Company and
each Subsidiary has timely prepared and filed all tax returns required to have been filed by the Company or such Subsidiary with
all appropriate governmental agencies and timely paid all taxes shown thereon or otherwise owed by it (after giving effect to
applicable extensions). The charges, accruals and reserves on the books of the Company in respect of taxes for all fiscal periods
are adequate in all material respects, and there are no material unpaid assessments against the Company or any Subsidiary nor,
to the Company’s Knowledge, any basis for the assessment of any additional taxes, penalties or interest for any fiscal period
or audits by any federal, state or local taxing authority except for any assessment which is not material to the Company and its
Subsidiaries, taken as a whole. All taxes and other assessments and levies that the Company or any Subsidiary is required to withhold
or to collect for payment have been duly withheld and collected and paid to the proper governmental entity or third party when
due. There are no tax liens or claims pending or, to the Company’s Knowledge, threatened against the Company or any Subsidiary
or any of their respective assets or property. Except as described on Schedule 4.11, there are no outstanding tax sharing
agreements or other such arrangements between the Company and any Subsidiary or other corporation or entity.

 

4.12     Title to Properties. Except
as disclosed in the SEC Filings, the Company and each Subsidiary has good and marketable title to all real properties and all
other properties and assets owned by it, in each case free from liens, encumbrances and defects that would materially affect the
value thereof or materially interfere with the use made or currently planned to be made thereof by them; and except as disclosed
in the SEC Filings, the Company and each Subsidiary holds any leased real or personal property under valid and enforceable leases
with no exceptions that would materially interfere with the use made or currently planned to be made thereof by them.

 

4.13     Certificates, Authorizations and
Permits. The Company and each Subsidiary possess adequate certificates, authorizations or permits issued by appropriate governmental
agencies or bodies necessary to conduct the business now operated by it, except where the failure to possess such certificates,
authorizations or permits has not had and could not reasonably be expected to have a Material Adverse Effect, and neither the
Company nor any Subsidiary has received any notice of proceedings relating to the revocation or modification of any such certificate,
authority or permit that, if determined adversely to the Company or such Subsidiary, could reasonably be expected to have a Material
Adverse Effect, individually or in the aggregate.

 

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4.14     Labor
Matters.

 

(a)     Except
as set forth on Schedule 4.14, the Company is not a party to or bound by any collective bargaining agreements or other agreements
with labor organizations. Except as set forth on Schedule 4.14, the Company has not violated in any material respect any
laws, regulations, orders or contract terms, affecting the collective bargaining rights of employees, labor organizations or any
laws, regulations or orders affecting employment discrimination, equal opportunity employment, or employees’ health, safety,
welfare, wages and hours.

 

(b)     (i)
There are no labor disputes existing, or to the Company's Knowledge, threatened, involving strikes, slow-downs, work stoppages,
job actions, disputes, lockouts or any other disruptions of or by the Company's employees, (ii) there are no unfair labor practices
or petitions for election pending or, to the Company's Knowledge, threatened before the National Labor Relations Board or any other
federal, state or local labor commission relating to the Company's employees, (iii) no demand for recognition or certification
heretofore made by any labor organization or group of employees is pending with respect to the Company and (iv) to the Company's
Knowledge, the Company enjoys good labor and employee relations with its employees and labor organizations.

 

(c)     Except
as disclosed in the SEC Filings or as described on Schedule 4.14, the Company is, and at all times has been, in compliance
in all material respects with all applicable laws respecting employment (including laws relating to classification of employees
and independent contractors) and employment practices, terms and conditions of employment, wages and hours, and immigration and
naturalization. There are no claims pending against the Company before the Equal Employment Opportunity Commission or any other
administrative body or in any court asserting any violation of Title VII of the Civil Rights Act of 1964, the Age Discrimination
Act of 1967, 42 U.S.C. §§ 1981 or 1983 or any other federal, state or local Law, statute or ordinance barring discrimination
in employment.

 

(d)     Except
as disclosed in the SEC Filings or as described on Schedule 4.14, the Company is not a party to, or bound by, any employment
or other contract or agreement that contains any severance, termination pay or change of control liability or obligation, including,
without limitation, any “excess parachute payment,” as defined in Section 280G(b) of the Internal Revenue Code.

 

(e)     Except
as specified in Schedule 4.14, each of the Company's employees is a Person who is either a United States citizen or a permanent
resident entitled to work in the United States. To the Company's Knowledge, the Company has no liability for the improper classification
by the Company of such employees as independent contractors or leased employees prior to the Closing.

 

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4.15     Intellectual Property.

 

(a)     All Intellectual Property of the
Company and its Subsidiaries is currently in compliance with all legal requirements (including timely filings, proofs and payments
of fees) and is valid and enforceable. No Intellectual Property of the Company or its Subsidiaries which is necessary for the conduct
of Company’s and each of its Subsidiaries’ respective businesses as currently conducted or as currently proposed to
be conducted has been or is now involved in any cancellation, dispute or litigation, and, to the Company’s Knowledge, no
such action is threatened. No patent of the Company or its Subsidiaries has been or is now involved in any interference, reissue,
re-examination or opposition proceeding.

 

(b)     All of the licenses and sublicenses
and consent, royalty or other agreements concerning Intellectual Property which are necessary for the conduct of the Company’s
and each of its Subsidiaries’ respective businesses as currently conducted or as currently proposed to be conducted to which
the Company or any Subsidiary is a party or by which any of their assets are bound (other than  generally commercially available,
non-custom, off-the-shelf software application programs having a retail acquisition price of less than $10,000 per license) (collectively,
“License Agreements”) are valid and binding obligations of the Company or its Subsidiaries that are parties thereto
and, to the Company’s Knowledge, the other parties thereto, enforceable in accordance with their terms, except to the extent
that enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other similar
laws affecting the enforcement of creditors’ rights generally, and there exists no event or condition which will result in
a material violation or breach of or constitute (with or without due notice or lapse of time or both) a default by the Company
or any of its Subsidiaries under any such License Agreement.

 

(c)     The Company and its Subsidiaries
own or have the valid right to use all of the Intellectual Property that is necessary for the conduct of the Company’s and
each of its Subsidiaries’ respective businesses as currently conducted or as currently proposed to be conducted and for the
ownership, maintenance and operation of the Company’s and its Subsidiaries’ properties and assets, free and clear of
all liens, encumbrances, adverse claims or obligations to license all such owned Intellectual Property and Confidential Information,
other than licenses entered into in the ordinary course of the Company’s and its Subsidiaries’ businesses. The Company
and its Subsidiaries have a valid and enforceable right to use all third party Intellectual Property and Confidential Information
used or held for use in the respective businesses of the Company and its Subsidiaries.

 

(d)     To the Company’s Knowledge,
the conduct of the Company’s and its Subsidiaries’ businesses as currently conducted does not infringe or otherwise
impair or conflict with (collectively, “Infringe”) any Intellectual Property rights of any third party or any confidentiality
obligation owed to a third party, and, to the Company’s Knowledge, the Intellectual Property and Confidential Information
of the Company and its Subsidiaries which are necessary for the conduct of Company’s and each of its Subsidiaries’
respective businesses as currently conducted or as currently proposed to be conducted are not being Infringed by any third party.
There is no litigation or order pending or outstanding or, to the Company’s Knowledge, threatened or imminent, that seeks
to limit or challenge or that concerns the ownership, use, validity or enforceability of any Intellectual Property or Confidential
Information of the Company and its Subsidiaries and the Company’s and its Subsidiaries’ use of any Intellectual Property
or Confidential Information owned by a third party, and, to the Company’s Knowledge, there is no valid basis for the same.

 

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(e)     The consummation of the transactions
contemplated hereby and by the other Transaction Documents will not result in the alteration, loss, impairment of or restriction
on the Company’s or any of its Subsidiaries’ ownership or right to use any of the Intellectual Property or Confidential
Information which is necessary for the conduct of Company’s and each of its Subsidiaries’ respective businesses as
currently conducted or as currently proposed to be conducted.

 

(f)     The Company and its Subsidiaries
have taken reasonable steps to protect the Company’s and its Subsidiaries’ rights in their Intellectual Property and
Confidential Information. Except under confidentiality obligations, there has been no material disclosure of any of the Company’s
or its Subsidiaries’ Confidential Information to any third party.

 

4.16     Environmental Matters. To the
Company’s Knowledge, neither the Company nor any Subsidiary is in violation of any statute, rule, regulation, decision or
order of any governmental agency or body or any court, domestic or foreign, relating to the use, disposal or release of hazardous
or toxic substances or relating to the protection or restoration of the environment or human exposure to hazardous or toxic substances
(collectively, “Environmental Laws”), owns or operates any real property contaminated with any substance that is subject
to any Environmental Laws, is liable for any off-site disposal or contamination pursuant to any Environmental Laws, or is subject
to any claim relating to any Environmental Laws, which violation, contamination, liability or claim has had or could reasonably
be expected to have a Material Adverse Effect, individually or in the aggregate; and there is no pending or, to the Company’s
Knowledge, threatened investigation that might lead to such a claim.

 

4.17     Litigation. Except as described
on Schedule 4.17, there are no pending legal actions, suits or proceedings against or affecting the Company, its Subsidiaries
or any of its or their properties; and to the Company’s Knowledge, no such actions, suits or proceedings are threatened
or contemplated. Neither the Company nor any Subsidiary, nor any director or officer thereof, is or since January 1, 2007 has
been the subject of any action involving a claim of violation of or liability under federal or state securities laws or a claim
of breach of fiduciary duty. There has not been, and to the Company’s Knowledge, there is not pending or contemplated, any
investigation by the SEC involving the Company or any current or former director or officer of the Company. The SEC has not issued
any stop order or other order suspending the effectiveness of any registration statement filed by the Company or any Subsidiary
under the 1933 Act or the 1934 Act.

 

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4.18     Financial Statements. The financial
statements included in each SEC Filing (as corrected pursuant to any restatement effected prior to the date hereof) comply in
all material respects with applicable accounting requirements and the rules and regulations of the SEC with respect thereto as
in effect at the time of filing (or such restatement, as applicable) and present fairly, in all material respects, the consolidated
financial position of the Company as of the dates shown and its consolidated results of operations and cash flows for the periods
shown, and such financial statements have been prepared in conformity with United States generally accepted accounting principles
applied on a consistent basis (“GAAP”) (except as may be disclosed therein or in the notes thereto, and, in the case
of quarterly financial statements, as permitted by Form 10-Q under the 1934 Act); provided, however, that the unaudited financial
statements are subject to normal year-end audit adjustments (which are not expected to be material) and do not contain all footnotes
required under generally accepted accounting principles. Except as set forth in the financial statements of the Company included
in the SEC Filings filed prior to the date hereof or as described on Schedule 4.18, neither the Company nor any of its
Subsidiaries has incurred any liabilities, contingent or otherwise, except those incurred in the ordinary course of business,
consistent (as to amount and nature) with past practices since the date of such financial statements, none of which, individually
or in the aggregate, have had or could reasonably be expected to have a Material Adverse Effect.

 

4.19     Insurance Coverage. The Company
and each Subsidiary maintains in full force and effect insurance coverage that is customary for comparably situated companies
for the business being conducted and properties owned or leased by the Company and each Subsidiary, and the Company reasonably
believes such insurance coverage to be adequate against all liabilities, claims and risks against which it is customary for comparably
situated companies to insure.

 

4.20     OTCQB Compliance. The Common
Stock is registered pursuant to Section 12(g) of the 1934 Act and is quoted on the OTCQB maintained by OTC Markets Group Inc. (the
“OTCQB”), and the Company has taken no action designed to, or likely to have the effect of, terminating the registration
of the Common Stock under the 1934 Act or removal from quotation of the Common Stock from the OTCQB, nor has the Company received
any notification that the SEC, the OTCQB or the Financial Industry Regulatory Authority, Inc. is contemplating terminating such
registration or quotation.

 

4.21     Brokers and Finders. No Person
will have, as a result of the transactions contemplated by the Transaction Documents, any valid right, interest or claim against
or upon the Company, any Subsidiary or an Investor for any commission, fee or other compensation pursuant to any agreement, arrangement
or understanding entered into by or on behalf of the Company, other than as described in Schedule 4.21.

 

4.22     No Directed Selling Efforts or
General Solicitation. Neither the Company nor any Person acting on its behalf has conducted any general solicitation or general
advertising (as those terms are used in Regulation D) in connection with the offer or sale of any of the Securities.

 

4.23     No Integrated Offering.
Neither the Company nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made any
offers or sales of any Company security or solicited any offers to buy any security, under circumstances that would adversely affect
reliance by the Company on Section 4(2) for the exemption from registration for the transactions contemplated hereby or would require
registration of the Securities under the 1933 Act.

 

4.24     Private Placement. The offer
and sale of the Securities to the Investors as contemplated hereby is exempt from the registration requirements of the 1933 Act,
assuming the representations of the Investors in Section 5 are true.

 

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4.25     Questionable Payments.
Neither the Company nor any of its Subsidiaries nor, to the Company’s Knowledge, any of their respective current
or former directors, officers, employees, agents or other Persons acting on behalf of the Company or any Subsidiary, has on behalf
of the Company or any Subsidiary or in connection with their respective businesses: (a) used any corporate funds for unlawful
contributions, gifts, entertainment or other unlawful expenses relating to political activity; (b) made any direct or indirect
unlawful payments to any governmental officials or employees from corporate funds; (c) established or maintained any unlawful
or unrecorded fund of corporate monies or other assets; (d) made any false or fictitious entries on the books and records of the
Company or any Subsidiary; or (e) made any unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful payment
of any nature.

 

4.26     Transactions with Affiliates.
Except as disclosed in the SEC Filings or as disclosed on Schedule 4.26, none of the officers or directors of the Company
and, to the Company’s Knowledge, none of the employees of the Company is presently a party to any transaction with the Company
or any Subsidiary (other than as holders of stock options and/or warrants, and 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 Company’s Knowledge, any entity in which any officer, director, or any such employee has a substantial interest or
is an officer, director, trustee or partner.

 

4.27     Internal Controls. The Company
is in material compliance with the provisions of the Sarbanes-Oxley Act of 2002 currently applicable
to the Company. The Company and the Subsidiaries maintain a system of internal accounting controls sufficient to provide
reasonable assurance that (i) transactions are executed in accordance with management's general or specific authorizations, (ii)
transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset
accountability, (iii) access to assets is permitted only in accordance with management's general or specific authorization, and
(iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action
is taken with respect to any differences. The Company has established disclosure controls and procedures (as defined in 1934 Act
Rules 13a-15(e) and 15d-15(e)) for the Company and designed such disclosure controls and procedures to ensure that material information
relating to the Company, including the Subsidiaries, is made known to the certifying officers by others within those entities,
particularly during the period in which the Company’s most recently filed periodic report under the 1934 Act, as the case
may be, is being prepared. The Company's certifying officers have evaluated the effectiveness of the Company's controls and procedures
as of the end of the period covered by the most recently filed periodic report under the 1934 Act (such date, the "Evaluation
Date"). The Company presented in its most recently filed periodic report under the 1934 Act the conclusions of the certifying
officers about the effectiveness of the disclosure controls and procedures based on their evaluations as of the Evaluation Date.
Since the Evaluation Date, there have been no significant changes in the Company's internal controls (as such term is defined
in Item 308 of Regulation S-K) or, to the Company's Knowledge, in other factors that could significantly affect the Company's
internal controls. The Company maintains and will continue to maintain a standard system of accounting established and administered
in accordance with GAAP and the requirements of the 1934 Act (to the extent applicable to the Company).

 

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4.28     Disclosures. Neither the Company
nor any Person acting on its behalf has provided the Investors or their agents or counsel with any information that constitutes,
as of the Closing Date, material non-public information, other than the terms of the transactions contemplated hereby. The written
materials delivered to the Investors in connection with the transactions contemplated by the Transaction Documents do not contain
any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements contained therein,
in light of the circumstances under which they were made, not misleading.

 

5.     Representations and Warranties of
the Investors. Each of the Investors hereby severally, and not jointly, represents and warrants to the Company that:

 

5.1     Organization and Existence.
If the Investor is not an individual, such Investor is a validly existing corporation, limited partnership or limited liability
company and has all requisite corporate, partnership or limited liability company power and authority to invest in the Securities
pursuant to this Agreement.

 

5.2     Authorization. The execution,
delivery and performance by such Investor of the Transaction Documents to which such Investor is a party have been duly authorized
and will each constitute the valid and legally binding obligation of such Investor, enforceable against such Investor in accordance
with their respective terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws
of general applicability, relating to or affecting creditors’ rights generally.

 

5.3     Purchase Entirely for Own Account.
The Securities to be received by such Investor hereunder will be acquired for such Investor’s own account, not as nominee
or agent, and not with a view to the resale or distribution of any part thereof in violation of the 1933 Act, and such Investor
has no present intention of selling, granting any in, or otherwise distributing the same and has no arrangement or understanding
with any other Persons regarding the distribution of such Securities in violation of the 1933 Act
without prejudice, however, to such Investor’s right at all times to sell or otherwise dispose of all or any part of such
Securities in compliance with applicable federal and state securities laws. Such Investor is acquiring the Securities hereunder
in the ordinary course of its business. Nothing contained herein shall be deemed a representation
or warranty by such Investor to hold the Securities for any period of time. Such Investor is not a broker-dealer registered
with the SEC under the 1934 Act or an entity engaged in a business that would require it to be so registered.

 

5.4     Investment Experience. Such
Investor acknowledges that it can bear the economic risk and complete loss of its investment in the Securities and has such knowledge
and experience in financial or business matters that it is capable of evaluating the merits and risks of the investment contemplated
hereby.

 

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5.5     Disclosure of Information. Such
Investor has had an opportunity to receive all information related to the Company requested by it and to ask questions of and
receive answers from the Company regarding the Company, its business and the terms and conditions of the offering of the Securities.
Such Investor acknowledges receipt of copies of the SEC Filings. Neither such inquiries nor any other due diligence investigation
conducted by such Investor shall modify, limit or otherwise affect such Investor’s right to rely on the Company’s
representations and warranties contained in this Agreement.

 

5.6     Restricted Securities. Such
Investor understands that the Securities are characterized as “restricted securities” under the U.S. federal securities
laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering and that under such
laws and applicable regulations such securities may be resold without registration under the 1933 Act only in certain limited
circumstances.

 

5.7     Legends. It is understood that,
except as provided below, certificates evidencing the Securities may bear the following or any similar legend:

 

(a)     “The securities represented
hereby have not been registered with the Securities and Exchange Commission or the securities commission of any state in reliance
upon an exemption from registration under the Securities Act of 1933, as amended, and, accordingly, may not be transferred unless
(i) such securities have been registered for sale pursuant to the Securities Act of 1933, as amended, (ii) such securities may
be sold pursuant to Rule 144, or (iii) the Company has received an opinion of counsel reasonably satisfactory to it that such transfer
may lawfully be made without registration under the Securities Act of 1933 as amended.”

 

(b)     If required by the authorities of
any state in connection with the issuance of sale of the Securities, the legend required by such state authority.

 

5.8     Accredited Investor. Such Investor
is an accredited investor as defined in Rule 501(a) of Regulation D, as amended, under the 1933 Act, as amended by the Dodd-Frank
Wall Street Reform and Consumer Protection Act.

 

5.9     No General Solicitation. Such
Investor did not learn of the investment in the Securities as a result of any general solicitation or general advertising.

 

5.10     Brokers and Finders. No Person
will have, as a result of the transactions contemplated by the Transaction Documents, any valid right, interest or claim against
or upon the Company, any Subsidiary or an Investor for any commission, fee or other compensation pursuant to any agreement, arrangement
or understanding entered into by or on behalf of such Investor.

 

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5.11     Prohibited Transactions. Since
the earlier of (a) such time as such Investor was first contacted by the Company or any other Person acting on behalf of the Company
regarding the transactions contemplated hereby or (b) thirty (30) days prior to the date hereof, neither such Investor nor any
Affiliate of such Investor which (x) had knowledge of the transactions contemplated hereby, (y) has or shares discretion relating
to such Investor’s investments or trading or information concerning such Investor’s investments, including in respect
of the Securities, or (z) is subject to such Investor’s review or input concerning such Affiliate’s investments or
trading (collectively, “Trading Affiliates”) has, directly or indirectly, effected or agreed to effect any short sale,
whether or not against the box, established any “put equivalent position” (as defined in Rule 16a-1(h) under the 1934
Act) with respect to the Common Stock, granted any other right (including, without limitation, any put or call option) with respect
to the Common Stock or with respect to any security that includes, relates to or derived any significant part of its value from
the Common Stock or otherwise sought to hedge its position in the Securities (each, a “Prohibited Transaction”). Prior
to the earliest to occur of (i) the termination of this Agreement, (ii) the Effective Date or (iii) the Effectiveness Deadline,
such Investor shall not, and shall cause its Trading Affiliates not to, engage, directly or indirectly, in a Prohibited Transaction.
Such Investor acknowledges that the representations, warranties and covenants contained in this Section 5.11 are being made for
the benefit of the Investors as well as the Company and that each of the other Investors shall have an independent right to assert
any claims against such Investor arising out of any breach or violation of the provisions of this Section 5.11.

 

5.12     Reliance on Exemptions.
Such Investor understands that the Securities are being offered and sold to it in reliance upon specific exemptions from the registration
requirements of the 1933 Act, the rules and regulations promulgated thereunder 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.

 

5.13     Investment Decision. Such Investor
understands that nothing in the Agreement or any other materials presented to such Investor in connection with the purchase and
sale of the Securities constitutes legal, tax or investment advice. Such Investor has consulted such legal, tax and investment
advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase of the Securities.

 

5.14     Risk of Loss. Such Investor
understands that its investment in the Securities involves a significant degree of risk, including a risk of total loss of such
Investor’s investment, and such Investor has full cognizance of and understands all of the risk factors related to such
Investor’s purchase of the Securities, including, but not limited to, those set forth under or incorporated by reference
under the caption “Risk Factors” in the SEC Filings. Such Investor understands that the market price of the Common
Stock has been volatile and that no representation is being made as to the future value of the Common Stock.

 

5.15     No Government Review. Such
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.

 

5.16     Residency. Such Investor's
principal executive office, if an entity, or residence, if an individual, is in the jurisdiction set forth immediately below such
Investor’s name on the signature pages hereto.

 

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6.     Conditions to Closing.

 

6.1     Conditions to the Investors’
Obligations. The obligation of each Investor to purchase the Shares and the Warrants at the Closing is subject to the fulfillment
to such Investor’s satisfaction, on or prior to the Closing Date, of the following conditions, any of which may be waived
by such Investor (as to itself only):

 

(a)     The representations and warranties
made by the Company in Section 4 hereof qualified as to materiality shall be true and correct at all times prior to and on the
Closing Date, except to the extent any such representation or warranty expressly speaks as of an earlier date, in which case such
representation or warranty shall be true and correct as of such earlier date, and, the representations and warranties made by the
Company in Section 4 hereof not qualified as to materiality shall be true and correct in all material respects at all times prior
to and on the Closing Date, except to the extent any such representation or warranty expressly speaks as of an earlier date, in
which case such representation or warranty shall be true and correct in all material respects as of such earlier date. The Company
shall have performed in all material respects all obligations and covenants herein required to be performed by it on or prior to
the Closing Date.

 

(b)     The Company shall have obtained
any and all consents, permits, approvals, registrations and waivers necessary or appropriate for consummation of the purchase and
sale of the Securities and the consummation of the other transactions contemplated by the Transaction Documents, all of which shall
be in full force and effect.

 

(c)     The Company shall have executed
and delivered the Registration Rights Agreement.

 

(d)     No judgment, writ, order, injunction,
award or decree of or by any court, or judge, justice or magistrate, including any bankruptcy court or judge, or any order of or
by any governmental authority, shall have been issued, and no action or proceeding shall have been instituted by any governmental
authority, enjoining or preventing the consummation of the transactions contemplated hereby or in the other Transaction Documents.

 

(e)     The Company shall have delivered
to the Investors an officer’s certificate, executed on behalf of the Company by its Chief Executive Officer or its Chief
Financial Officer, dated as of the Closing Date, certifying to the fulfillment of the conditions specified in subsections (a),
(b), (d) and (h) of this Section 6.1.

 

(f)     The Company shall have delivered
to the Investors a secretary’s certificate, executed on behalf of the Company by its Secretary, dated as of the Closing Date,
certifying the resolutions adopted by the Board of Directors of the Company approving (i) the transactions contemplated by this
Agreement and the other Transaction Documents and (ii) the issuance of the Securities, certifying the current versions of the Articles
of Organization and Bylaws of the Company and certifying as to the signatures and authority of persons signing the Transaction
Documents and related documents on behalf of the Company.

 

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(g)     The Investors shall have received
an opinion from Trombly Business Law, PC, the Company's counsel, dated as of the Closing Date, in form and substance reasonably
acceptable to the Investors and addressing such legal matters as the Investors may reasonably request.

 

(h)     No stop order or suspension of trading
shall have been imposed by the OTCQB, the SEC or any other governmental or regulatory body with respect to public trading in the
Common Stock.

 

6.2     Conditions to Obligations of
the Company. The Company's obligation to sell and issue the Shares and the Warrants at the Closing is subject to the fulfillment
to the satisfaction of the Company on or prior to the Closing Date of the following conditions, any of which may be waived by the
Company:

 

(a)     The representations and warranties
made by the Investors in Section 5 hereof, other than the representations and warranties contained in Sections 5.3, 5.4, 5.5, 5.6,
5.7, 5.8 and 5.9 (the “Investment Representations”), shall be true and correct in all material respects when made,
and shall be true and correct in all material respects on the Closing Date with the same force and effect as if they had been made
on and as of said date. The Investment Representations shall be true and correct in all respects when made, and shall be true and
correct in all respects on the Closing Date with the same force and effect as if they had been made on and as of said date. The
Investors shall have performed in all material respects all obligations and covenants herein required to be performed by them on
or prior to the Closing Date.

 

(b)     The Investors shall have executed
and delivered the Registration Rights Agreement.

 

(c)     The Investors shall have delivered
the Purchase Price to the Company.

 

6.3     Termination of Obligations to Effect
Closing; Effects.

 

(a)     The obligations of the Company,
on the one hand, and the Investors, on the other hand, to effect the Closing shall terminate as follows:

 

(i)     Upon the mutual written consent
of the Company and the Investors;

 

(ii)     By the Company if any of the conditions
set forth in Section 6.2 shall have become incapable of fulfillment, and shall not have been waived by the Company;

 

(iii)     By an Investor (with respect to
itself only) if any of the conditions set forth in Section 6.1 shall have become incapable of fulfillment, and shall not have been
waived by the Investor; or

 

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(iv)     By either the Company or any Investor
(with respect to itself only) if the Closing has not occurred on or prior to September 30, 2012;

 

provided, however, that, except in the case
of clause (i) above, the party seeking to terminate its obligation to effect the Closing shall not then be in breach of any of
its representations, warranties, covenants or agreements contained in this Agreement or the other Transaction Documents if such
breach has resulted in the circumstances giving rise to such party’s seeking to terminate its obligation to effect the Closing.

 

(b)     In the event of termination by the
Company or any Investor of its obligations to effect the Closing pursuant to this Section 6.3, written notice thereof shall forthwith
be given to the other Investors by the Company and the other Investors shall have the right to terminate their obligations to effect
the Closing upon written notice to the Company and the other Investors. Nothing in this Section 6.3 shall be deemed to release
any party from any liability for any breach by such party of the terms and provisions of this Agreement or the other Transaction
Documents or to impair the right of any party to compel specific performance by any other party of its obligations under this Agreement
or the other Transaction Documents.

 

7.     Covenants and Agreements of the Company.

 

7.1     Reservation of Common Stock.
The Company shall at all times reserve and keep available out of its authorized but unissued shares of Common Stock, solely for
the purpose of providing for the exercise of the Warrants, such number of shares of Common Stock as shall from time to time equal
the Warrant Shares issuable from time to time.

 

7.2     Reports. The Company will furnish
to the Investors such information relating to the Company and its Subsidiaries as from time to time may reasonably be requested
by the Investors; provided, however, that the Company shall not disclose material nonpublic information to the Investors, or to
advisors to or representatives of the Investors, unless prior to disclosure of such information the Company identifies such information
as being material nonpublic information and provides the Investors, such advisors and representatives with the opportunity to
accept or refuse to accept such material nonpublic information for review and any Investor wishing to obtain such information
enters into an appropriate confidentiality agreement with the Company with respect thereto.

 

7.3     No Conflicting Agreements. The
Company will not take any action, enter into any agreement or make any commitment that would conflict or interfere in any material
respect with the Company’s obligations to the Investors under the Transaction Documents.

 

7.4     Insurance. The Company shall
not materially reduce the insurance coverages described in Section 4.19.

 

7.5     Compliance with Laws. The Company
will comply in all material respects with all applicable laws, rules, regulations, orders and decrees of all governmental authorities.

 

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7.6     Listing of Underlying Shares and
Related Matters. If the Company applies to have its Common Stock or other securities traded on any stock exchange or market,
it shall include in such application the Shares and the Warrant Shares and will take such other action as is necessary to cause
such Common Stock to be so listed. Following any such listing, the Company will use commercially reasonable efforts to continue
the listing and trading of its Common Stock on such stock exchange or market and, in accordance, therewith, will use commercially
reasonable efforts to comply in all respects with the Company’s reporting, filing and other obligations under the bylaws
or rules of such stock exchange or market, as applicable.

 

7.7     Termination of Covenants. The
provisions of Sections 7.2 through 7.5 shall terminate and be of no further force and effect on the date on which the Company’s
obligations under the Registration Rights Agreement to register or maintain the effectiveness of any registration covering the
Registrable Securities (as such term is defined in the Registration Rights Agreement) shall terminate.

 

7.8     Removal of Legends. In connection
with any sale or disposition of the Securities by an Investor pursuant to Rule 144 or pursuant to any other exemption under the
1933 Act such that the purchaser acquires freely tradable shares and upon compliance by the Investor with the requirements of
this Agreement, the Company shall or, in the case of Common Stock, shall cause the transfer agent for the Common Stock (the “Transfer
Agent”) to issue replacement certificates representing the Securities sold or disposed of without restrictive legends. Upon
the earlier of (i) registration for resale pursuant to the Registration Rights Agreement or (ii) the Shares or the Warrant Shares,
as applicable, becoming freely tradable by a non-affiliate pursuant to Rule 144 the Company shall (A) deliver to the Transfer
Agent irrevocable instructions that the Transfer Agent shall issue a certificate representing shares of Common Stock without legends
upon receipt by such Transfer Agent of (X) either (1) a customary representation by the Investor that Rule 144 applies to the
shares of Common Stock represented thereby or (2) a statement by the Investor that such Investor has sold the shares of Common
Stock represented thereby in accordance with the Plan of Distribution contained in the Registration Statement, and (Y) if applicable,
the legended certificates for such shares, and (B) cause its counsel to deliver to the Transfer Agent one or more blanket opinions
to the effect that the removal of such legends in such circumstances may be effected under the 1933 Act. At any time when one
or more of the Securities may be freely sold or is covered by an effective Registration Statement, the Company shall, or shall
cause the Transfer Agent to, promptly cause the Investor’s Securities to be replaced with Securities which do not bear restrictive
legends, and Warrant Shares subsequently issued upon due exercise of the Warrants shall not bear such restrictive legends provided
such Securities may be freely sold or are covered by an effective Registration Statement. When the Company is required to cause
an unlegended Security to be issued as provided herein, if: (1) the unlegended Security is not delivered to an Investor within
three (3) Business Days of submission by that Investor of a request for unlegended Securities and, if applicable, the documentation
specified above to the Transfer Agent or the Company, as applicable, and (2) prior to the time such unlegended Security is received
by the Investor, the Investor, or any third party on behalf of such Investor or for the Investor’s account, purchases (in
an open market transaction or otherwise) another Security to deliver in satisfaction of a sale by the Investor of such Security
(a “Buy-In”), then the Company shall pay in cash to the Investor (for costs incurred either directly by such Purchaser
or on behalf of a third party) the amount by which the total purchase price paid for the replacement Security as a result of the
Buy-In (including brokerage commissions, if any) exceeds the proceeds received by such Investor as a result of the sale to which
such Buy-In relates. The Investor shall provide the Company written notice indicating the amounts payable to the Investor in respect
of the Buy-In.

 

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7.9     Subsequent Equity Sales. From
the date hereof until such time as no Investor holds any of the Securities, the Company shall be prohibited from effecting or
entering into an agreement to effect any Subsequent Financing involving a “Variable Rate Transaction”. The term “Variable
Rate Transaction” shall mean a transaction in which the Company issues or sells (i) any debt or equity securities that are
convertible into, exchangeable or exercisable for, or include the right to receive additional shares of Common Stock either (A)
at a conversion, exercise or exchange rate or other price that is based upon and/or varies with the trading prices of or quotations
for the shares of Common Stock at any time after the initial issuance of such debt or equity securities, or (B) with a conversion,
exercise or exchange price that is subject to being reset at some future date after the initial issuance of such debt or equity
security or upon the occurrence of specified or contingent events directly or indirectly related to the business of the Company
or the market for the Common Stock or (ii) enters into any agreement, including, but not limited to, an equity line of credit,
whereby the Company may sell securities at a future determined price.

 

7.10     Right
to Participate in Future Financings. From the date hereof until 90 days after the Effective Date, upon any financing by
the Company of its Common Stock or Common Stock Equivalents (a “Subsequent Financing”), each Investor shall have
the right to participate in such Subsequent Financing as provided herein. Additionally, from the date hereof until two (2)
years after the Closing Date, for any Subsequent Financing in which the Company issues equity securities in the Company
(other than shares issued for compensation or services) at a price that is below the exercise price of the Warrants each
Investor shall have the right to participate in such Subsequent Financing as provided herein. At least five (5) Business Days
prior to the closing of the Subsequent Financing, the Company shall deliver to each Investor a written notice of its
intention to effect a Subsequent Financing (“Pre-Notice”), which Pre-Notice shall ask such Investor if it wants
to review the details of such financing (such additional notice, a “Subsequent Financing Notice”). Upon the
request of an Investor, and only upon a request by such Investor, for a Subsequent Financing Notice, the Company shall
promptly, but no later than one Business Day after such request, deliver a Subsequent Financing Notice to such Investor. The
Subsequent Financing Notice shall describe in reasonable detail the proposed terms of such Subsequent Financing, the amount
of proceeds intended to be raised thereunder, the Person with whom such Subsequent Financing is proposed to be effected, and
attached to which shall be a term sheet or similar document relating thereto. Each Investor shall notify the Company by
5:00 p.m. (New York City time) on the fifth (5th) Business Day after their receipt of the Subsequent Financing Notice of its
willingness to participate in the Subsequent Financing on the terms described in the Subsequent Financing Notice, subject to
completion of mutually acceptable documentation. The Investors agreeing to participate in the Subsequent Financing shall have
the right to purchase their Pro Rata Portion (as defined below) of the Common Stock or Common Stock Equivalents to be issued
in such Subsequent Financing. “Pro Rata Portion” is the ratio of (x) the number of shares of Common Stock
beneficially owned amount by such Investor (determined in accordance with Rule 13d-3 under the 1934 Act and (y) number of
shares of Common Stock then outstanding (calculated on a fully diluted basis). Notwithstanding the foregoing, this Section
7.10 shall not apply in respect of the issuance of (a) shares of Common Stock or options to employees, consultants, officers
or directors of the Company pursuant to any stock or option plan duly adopted by a majority of the non-employee members of
the Board of Directors of the Company or a majority of the members of a committee of non-employee directors established for
such purpose, shares of Common Stock issuable in respect of the Warrants, and (b)  securities upon the exercise of or conversion of any convertible securities, options or warrants issued and
outstanding on the date of this Agreement, provided that the terms of such securities have not been amended since the date of
this Agreement to increase the number of shares of Common Stock issuable thereunder or to lower the exercise or conversion
price thereof.

 

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7.11     Equal Treatment of Investors.
No consideration shall be offered or paid to any Person to amend or consent to a waiver or modification of any provision of any
of the Transaction Documents unless the same consideration is also offered to all of the parties to the Transaction Documents.
For clarification purposes, this provision constitutes a separate right granted to each Investor by the Company and negotiated
separately by each Investor, and is intended for the Company to treat the Investors as a class and shall not in any way be construed
as the Investors acting in concert or as a group with respect to the purchase, disposition or voting of Securities or otherwise.

 

7.12     Use of Proceeds. The Company
shall use the net proceeds of the sale of the Shares and the Warrants as provided in Section 4.7.

 

8.     Survival and Indemnification.

 

8.1     Survival. The
representations, warranties, covenants and agreements contained in this Agreement shall survive the Closing of the transactions
contemplated by this Agreement.

 

8.2     Indemnification.
The Company agrees to indemnify and hold harmless each Investor and its Affiliates and their respective directors, officers, employees
and agents from and against any and all losses, claims, damages, liabilities and expenses (including without limitation reasonable
attorney fees and disbursements and other expenses incurred in connection with investigating, preparing or defending any action,
claim or proceeding, pending or threatened and the costs of enforcement thereof) (collectively, “Losses”) to which
such Person may become subject as a result of any breach of representation, warranty, covenant or agreement made by or to be performed
on the part of the Company under the Transaction Documents, and will reimburse any such Person for all such amounts as they are
incurred by such Person.

 

8.3     Conduct
of Indemnification Proceedings. Promptly after receipt by any Person (the “Indemnified Person”)
of notice of any demand, claim or circumstances which would or might give rise to a claim or the commencement of any action, proceeding
or investigation in respect of which indemnity may be sought pursuant to Section 8.2, such Indemnified Person shall promptly notify
the Company in writing and the Company shall assume the defense thereof, including the employment of counsel reasonably satisfactory
to such Indemnified Person, and shall assume the payment of all reasonable fees and expenses; provided, however,
that the failure of any Indemnified Person so to notify the Company shall not relieve the Company of its obligations hereunder
except to the extent that the Company is materially prejudiced by such failure to notify. In any such proceeding, any Indemnified
Person shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such
Indemnified Person unless: (i) the Company and the Indemnified Person shall have mutually agreed to the retention of such counsel;
or (ii) in the reasonable judgment of counsel to such Indemnified Person representation of both parties by the same counsel would
be inappropriate due to actual or potential differing interests between them. The Company shall not be liable for any settlement
of any proceeding effected without its written consent, which consent shall not be unreasonably withheld, but if settled with
such consent, or if there be a final judgment for the plaintiff, the Company shall indemnify and hold harmless such Indemnified
Person from and against any loss or liability (to the extent stated above) by reason of such settlement or judgment. Without the
prior written consent of the Indemnified Person, which consent shall not be unreasonably withheld, the Company shall not effect
any settlement of any pending or threatened proceeding in respect of which any Indemnified Person is or could have been a party
and indemnity could have been sought hereunder by such Indemnified Party, unless such settlement includes an unconditional release
of such Indemnified Person from all liability arising out of such proceeding.

 

    	22

    	 	

    
 

9.     Miscellaneous.

 

9.1     Successors and Assigns. This
Agreement may not be assigned by a party hereto without the prior written consent of the Company or the Investors, as applicable,
provided, however, that an Investor may assign its rights and delegate its duties hereunder in whole or in part to an Affiliate
or to a third party acquiring some or all of its Securities in a transaction complying with applicable securities laws without
the prior written consent of the Company or the other Investors. The provisions of this Agreement shall inure to the benefit of
and be binding upon the respective permitted successors and assigns of the parties. Nothing in this Agreement, express or implied,
is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies,
obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

 

9.2     Counterparts; Faxes. This Agreement
may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument. This Agreement may also be executed and transmitted via facsimile, or by portable document format
via electronic mail, each of which shall be deemed an original.

 

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

 

9.4     Notices. Unless otherwise provided,
any notice required or permitted under this Agreement shall be given in writing and shall be deemed effectively given as hereinafter
described (i) if given by personal delivery, then such notice shall be deemed given upon such delivery, (ii) if given by telex
or telecopier, then such notice shall be deemed given upon receipt of confirmation of complete transmittal, (iii) if given by
mail, then such notice shall be deemed given upon the earlier of (A) receipt of such notice by the recipient or (B) three days
after such notice is deposited in first class mail, postage prepaid, (iv) if given by an internationally recognized overnight
air courier, then such notice shall be deemed given one Business Day after delivery to such carrier, and (v) if given by electronic
mail, upon receipt. All notices shall be addressed to the party to be notified at the address as follows, or at such other address
as such party may designate by ten days’ advance written notice to the other party:

  

If to the Company:

 

Precision Optics Corporation, Inc.

22 East Broadway

Gardner, Massachusetts 01440-3338

Attention: Joseph N. Forkey,

President and Chief Executive Officer

Fax: (978) 630-1487

 

    	23

    	 	

    
 

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

 

Amy Trombly, Esq.

Trombly Business Law, PC

1320 Centre Street, Suite 202

Newton, MA 02459

Fax: (617) 663-6164

 

If to the Investors:

 

to the addresses set forth on the signature
pages hereto.

 

9.5     Expenses. The parties hereto
shall pay their own costs and expenses in connection herewith. The Company shall reimburse the Investors within 30 days for all
reasonable, actual out-of-pocket expenses incurred by the Investors, including without limitation reimbursement of attorneys’
fees and disbursements, in connection with any amendment, modification or waiver of this Agreement or the other Transaction Documents
requested by the Company. The Company will only be obligated to reimburse Investors for the use of one counsel. Additionally,
the Company’s obligation will be capped at $5,000 per amendment, modification or waiver. In the event that legal proceedings
are commenced by any party to this Agreement against another party to this Agreement in connection with this Agreement or the
other Transaction Documents, the party or parties which do not prevail in such proceedings shall severally, but not jointly, pay
their pro rata share of the reasonable attorneys’ fees and other reasonable out-of-pocket costs and expenses incurred by
the prevailing party in such proceedings.

 

9.6     Amendments and Waivers. Any
term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a
particular instance and either retroactively or prospectively), only with the written consent of the Company and the Investors.
Any amendment or waiver effected in accordance with this paragraph shall be binding upon each holder of any Securities purchased
under this Agreement at the time outstanding, each future holder of all such Securities, and the Company.

 

9.7     Publicity. Except as set forth
below, no public release or announcement concerning the transactions contemplated hereby shall be issued by the Company or the
Investors without the prior consent of the Company (in the case of a release or announcement by the Investors) or the Investors
(in the case of a release or announcement by the Company) (which consents shall not be unreasonably withheld), except as such
release or announcement may be required by law or the applicable rules or regulations of any securities exchange or securities
market, in which case the Company or the Investors, as the case may be, shall allow the Investors or the Company, as applicable,
to the extent reasonably practicable in the circumstances, reasonable time to comment on such release or announcement in advance
of such issuance. No later than one Business Day following the Closing Date, the Company will publicly disclose the transactions
contemplated hereby and, in connection therewith, will, no later than two Business Days following the Closing Date, file with
the SEC either a Current Report on Form 8-K, a Quarterly Report on Form 10-Q or an Annual Report on Form 10-K, to the extent permissible,
which shall attach as exhibits copies of the Transaction Documents. In addition, the Company will make such other filings and
notices in the manner and time required by the SEC.

 

    	24

    	 	

    
 

9.8     Severability. Any provision
of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the
extent of such prohibition or unenforceability without invalidating the remaining provisions hereof but shall be interpreted as
if it were written so as to be enforceable to the maximum extent permitted by applicable law, and any such prohibition or unenforceability
in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. To the extent permitted
by applicable law, the parties hereby waive any provision of law which renders any provision hereof prohibited or unenforceable
in any respect.

 

9.9     Entire Agreement. This Agreement,
including the Exhibits and the Disclosure Schedules, and the other Transaction Documents constitute the entire agreement among
the parties hereof with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings,
both oral and written, between the parties with respect to the subject matter hereof and thereof.

 

9.10     Further Assurances. The parties
shall execute and deliver all such further instruments and documents and take all such other actions as may reasonably be required
to carry out the transactions contemplated hereby and to evidence the fulfillment of the agreements herein contained.

 

9.11     Governing Law; Consent to Jurisdiction;
Waiver of Jury Trial. This Agreement shall be governed by, and construed in accordance with, the internal laws of the State
of New York without regard to the choice of law principles thereof (other than Section 5-1401 of the New York General Obligation
Law). Each of the parties hereto irrevocably submits to the exclusive jurisdiction of the courts of the State of New York located
in New York County and the United States District Court for the Southern District of New York for the purpose of any suit, action,
proceeding or judgment relating to or arising out of this Agreement and the transactions contemplated hereby. Service of process
in connection with any such suit, action or proceeding may be served on each party hereto anywhere in the world by the same methods
as are specified for the giving of notices under this Agreement. Each of the parties hereto irrevocably consents to the jurisdiction
of any such court in any such suit, action or proceeding and to the laying of venue in such court. Each party hereto irrevocably
waives any objection to the laying of venue of any such suit, action or proceeding brought in such courts and irrevocably waives
any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.  TO
THE MAXIMUM EXTENT PERMITTED UNDER APPLICABLE LAW, EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY
LITIGATION WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.

 

9.12     Independent
Nature of Investors' Obligations and Rights. The obligations of each Investor under any Transaction Document are several and
not joint with the obligations of any other Investor, and no Investor shall be responsible in any way for the performance of the
obligations of any other Investor under any Transaction Document. The decision of each Investor to purchase Securities pursuant
to the Transaction Documents has been made by such Investor independently of any other Investor. Nothing contained herein or in
any Transaction Document, and no action taken by any Investor pursuant thereto, shall be deemed to constitute the Investors as
a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Investors are in
any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents.
Each Investor acknowledges that no other Investor has acted as agent for such Investor in connection with making its investment
hereunder and that no Investor will be acting as agent of such Investor in connection with monitoring its investment in the Securities
or enforcing its rights under the Transaction Documents. Each Investor shall be entitled to independently protect and enforce
its rights, including, without limitation, the rights arising out of this Agreement or out of the other Transaction Documents,
and it shall not be necessary for any other Investor to be joined as an additional party in any proceeding for such purpose. The
Company acknowledges that each of the Investors has been provided with the same Transaction Documents for the purpose of closing
a transaction with multiple Investors and not because it was required or requested to do so by any Investor.

 

[Signature Page follows]

 

    	25

    	 	

    
 

IN WITNESS WHEREOF, the
parties have executed this Agreement or caused their duly authorized officers to execute this Agreement as of the date first above
written.

 

 

	The Company:	PRECISION OPTICS CORPORATION,
INC.
	 	 
	 	By: 	
	 	 	Name: Joseph N. Forkey
Title: President and Chief
Executive Officer

 

 

 

 

[Signature Page for Investor Follows]

 

 

    	26

    	 	

    
 

	 	 	 	[	]
	 	 	 	 	 
	 	 	By:		 
	 	 	Name:		 
	 	 	Title:		 
	 	 	 	 	 
	Address for Delivery of Securities to Investor:	 	 	 	 
	 	 	 	 	 
		 	 	 	 
	 	 	Fax:	 	 
	 	 	Email:	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	Address for Notice (if different):	 	 	 	 
	 	 	 	 	 
	 	 	Fax:	 	 
	 	 	Email:	 	 
	 	 	 	 	 
	 	 	 	 	 
	Subscription Amount:	 	 	$	 
	 	 	 	 	 
	Shares:	 	 	 	 
	 	 	 	 	 
	Warrant Shares:	 	 	 	 
	 	 	 	 	 
	EIN Number:	 	 	 	 

 

    	27

    	 	

    
 

Disclosure Schedules to the Purchase Agreement

 

Schedule 4.1 – Subsidiaries.

 

	Name	 	Jurisdiction of Incorporation
	 	 	 
	Precise Medical, Inc.	 	Commonwealth of Massachusetts, USA
	Wood’s Precision Optics Corporation, Limited	 	Hong Kong

 

Schedule 4.3 – Capitalization.

 

February 1, 2007 Transaction

 

On February 1, 2007, the Company entered into
a Purchase Agreement (the “February 2007 Purchase Agreement”) with institutional and other accredited investors pursuant
to which it sold an aggregate of 10,000,000 shares of common stock at a price of $0.25 per share and warrants to purchase an aggregate
of 10,000,000 shares of common stock (subject to adjustment) at an exercise price of $0.32 per share (subject to adjustment) (the
“February 2007 Warrants”), raising gross proceeds of $2,500,000. In conjunction with the Company’s issuance of
Notes and Warrants on June 25, 2008 as described below, certain anti-dilution provisions of the February 2007 Warrants were triggered.
As a result, the number of February 2007 Warrants was increased from 10,000,000 to 14,551,577 and the related exercise price was
decreased from $0.32 per share to $0.22 per share. The February 2007 Warrants expired on February 1, 2012.

 

Pursuant to the February 2007 Purchase Agreement,
the Company agreed to file a registration statement with the Securities and Exchange Commission within forty-five days after the
closing date of the transaction to register the resale of the shares and the shares of common stock issuable upon exercise of the
February 2007 Warrants, and to use its commercially reasonable best efforts to have the Registration Statement declared effective
as soon as practicable after filing. The Company also agreed to keep the registration statement effective until the earlier of
(i) the date on which all the registrable securities covered by such registration statement, as amended form time to time, have
been sold, and (ii) the date on which all the securities may be sold without restriction pursuant to Rule 144 of the Securities
Act of 1933.

 

June 25, 2008 Transaction

 

On June 25, 2008, the Company entered into
a Purchase Agreement, as amended on December 11, 2008, with institutional and other accredited investors (the “Investors”)
pursuant to which it sold a total of $600,000 of 10% Senior Secured Convertible Notes (the “Notes”) that are convertible
at the Investor’s option into a total of 480,000 shares of the Company’s common stock at a conversion rate of $1.25.
The Company also issued warrants to purchase a total of 316,800 shares of its common stock at an exercise price of $1.75 per share
(the “Warrants”). Interest accrues on the Notes at a rate of 10% per year and is payable in cash upon the earlier of
conversion or maturity of the Notes. The original maturity of the Notes was June 25, 2010 and the Warrants expire on June 25, 2015,
subject to extension. By mutual agreement with the Company, the Investors amended the Notes on several dates to extend the “Stated
Maturity Date” of the Notes. The conversion price of the Notes and the exercise price of the Warrants may be adjusted downward
in the event the Company issues shares of common stock or securities convertible into common stock at a price lower than the conversion
price of the Notes or exercise price of the Warrants at the time of issuance.

 

    	28

    	 	

    
 

Pursuant to the Purchase Agreement, the Notes
and Warrants were not convertible or exercisable until the Company implemented a 1 for 6 reverse stock split, which required the
approval of its stockholders. On November 25, 2008, the Company entered into a Side Letter Agreement in which the Investors agreed
to change the ratio of the reverse split from 1 for 6 to 1 for 25. On December 11, 2008, the Company effected a 1 for 25 reverse
split of its common stock.

 

Pursuant to a Registration Rights Agreement
entered into with the Investors on June 25, 2008, the Company agreed to file a registration statement with the Securities and Exchange
Commission by the earlier of (i) two days following the effectiveness of the amendment to implement a reverse stock split, and
(ii) December 15, 2008, to register the resale of the common stock issuable upon the conversion of the Notes and the exercise of
the Warrants. The Company agreed to keep the registration statement effective until the earlier of (i) the date on which all the
securities have been sold, and (ii) the date on which all the securities may be sold without restriction pursuant to Rule 144 of
the Securities Act of 1933.

 

The Notes contain covenants binding on the
Company and certain events of default, including but not limited, to:

 

	 	●	the failure of the Company to make a scheduled payment;
	 	 	 
	 	●	the failure of the Company to make payments in excess of $100,000 on any liability or obligation, or if there is an acceleration of the stated maturity of any liability or obligation in excess of $100,000; or
	 	 	 
	 	●	the Company entering bankruptcy.

 

If an event of default occurs and is uncured
within the allowable grace period, if any, the Investors may declare all amounts under the Notes immediately due and payable and
may pursue any other available remedies.

 

On December 15, 2011, the Company repaid Special
Situations Fund III QP, L.P. a principal repayment of $275,000 and accrued interest of $95,486, for a total payment of $370,486.
On December 15, 2011, the Company repaid Special Situations Private Equity Fund, L.P. a principal repayment of $275,000 and accrued
interest of $95,486, for a total payment of $370,486. The Notes held by Special Situations Fund III QP, L.P. and Special Situations
Private Equity Fund, L.P. have been satisfied in full and the obligations thereunder have been terminated.

 

On March 31, 2012, the remaining Investor,
Arnold Schumsky, further amended his remaining Note to extend the “Stated Maturity Date” of the principal to July 31,
2012 and to modify the Note such that all accrued and unpaid interest on the Note up to and including March 31, 2012 shall be due
on or before April 13, 2012, on the condition that the Company issue to him a warrant for 5,000 shares of common stock with an
exercise price of $1.20 per share and a term of three years. On April 13, 2012, the Company repaid Mr. Schumsky a payment of the
accrued interest of $18,819, and such payment included all accrued and unpaid interest on the Note up to and including March 31,
2012. On May 8, 2012, the Company issued Mr. Schumsky the warrant according to the terms described in the amended Note.

 

    	29

    	 	

    
 

Schedule 4.8 – No Material Adverse
Change.

 

None.

 

Schedule 4.11 – Tax Matters.

 

None.

 

Schedule 4.14 – Labor Matters.

 

None.

 

Schedule 4.17 – Litigation.

 

None.

 

Schedule 4.18 – Financial Statements.

 

None.

 

Schedule 4.21 – Brokers and Finders.

 

The Company engaged Loewen, Ondaatje &
McCutcheon, Limited (“LOM”) on August 1, 2012. The Company will generally pay LOM a 7% cash fee plus warrants and expenses
for amounts raised in this offering.

  

Schedule 4.26 – Transactions with
Affiliates.

 

None.

 

30ex4c.htm

NUGOLD RESOURCES, INC.

 

 

TOTAL AUTHORIZED ISSUE

100,000,000 SHARES PAR VALUE $.001 EACH

COMMON STOCK

 

 

THIS IS TO CERTIFY THAT ________________________________________ IS THE OWNER OF _________________________________________________________________________ FULLY PAID AND NON-ASSESSABLE SHARES OF THE ABOVE CORPORATION TRANSFERABLE ONLY ON THE BOOKS OF THE CORPORATION BY THE HOLDER HEREOF IN PERSON OR BY DULY AUTHORIZED ATTORNEY UPON SURRENDER OF THIS CERTIFICATE PROPERLY ENDORSED WITNESS, THE SEAL OF THE CORPORATION AND THE SIGNATURES OF ITS DULY AUTHORIZED OFFICERS.

 

 

DATED

 

 

SECRETARY ____________________ PRESIDENT______________________

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