Document:

FORM OF PROPERTY MANAGEMENT AGREEMENT

 

THIS PROPERTY MANAGEMENT AGREEMENT (“Agreement”)
is made and entered into as of _______, 2012, by and among UNITED REALTY TRUST INCORPORATED, a Maryland corporation (“REIT”),
UNITED REALTY CAPITAL OPERATING PARTNERSHIP, L.P., a Delaware limited partnership (“OP”), and URA PROPERTY MANAGEMENT
LLC, a Delaware limited liability company (“Property Manager”).

 

RECITALS :

 

A.           OP
is a newly formed limited partnership whose limited partner is REIT, and was formed to acquire, own, operate, lease, finance and
manage properties throughout the eastern United States. For purposes of this Agreement, OP and REIT, as well as any of their direct
and indirect subsidiaries and any joint ventures into which any of the foregoing may enter and which are controlled by the OP or
REIT, are individually or collectively referred to herein as “Owner.”

 

B.           Property
Manger is a newly formed limited liability company, and was formed to operate, manage, lease and manage construction
and development with respect to properties located throughout the eastern Unites States.

 

C.           Owner
desires to engage Property Manager, and Property Manager desires to accept such engagement, to manage the properties hereafter
acquired by Owner under the terms and conditions set forth herein.

 

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

 

1.           
Definitions . Except as otherwise specified or as the context may otherwise require, the following terms have the
respective meanings set forth below for all purposes of this Agreement, and the definitions of such terms are equally applicable
both to the singular and plural forms thereof:

 

(a)          “
Improvements ” means buildings, structures, and equipment from time to time located on the Properties and all parking
and common areas located on the Properties.

 

(b)          “
Management Fees ” means the fees and expenses payable to Property Manager pursuant to Section 6 hereof.

 

(c)          “
On-Site Personnel ” means persons hired or retained as employees of Property Manager to perform services at the Properties.

 

(d)          “
Owner ” has the meaning set forth in Recital A.

 

(e)          “
Property Manager ” has the meaning set forth in the introductory paragraph above.

 

    	 

    	 

    

 

(f)           “
Property ” means an individual real estate asset owned by Owner and all tracts acquired by Owner related to that asset
subject to this Agreement as more fully described in a Property Addendum (as defined below).

 

(g)          “
Properties ” means all the real estate assets of Owner covered by this Agreement, collectively.

 

(h)          “
Property Addendum ” means an addendum (as the same may be modified, amended or supplemented in writing, from time
to time) which shall be attached to this Agreement and incorporated herein by reference as each Property is purchased and made
subject to this Agreement describing the Property, including the services to be provided by, and the Management Fees to be charged
by, Property Manager. If any Property is sold by Owner, the Property Addendum with respect to such Property may, at Owner’s
election, be deemed of no further force or effect from and after the closing of any such sales, except to the extent of post-closing
management and accounting functions thereafter to be performed.

 

2.           
Appointment of Property Manager .

 

(a)          Owner
hereby engages and retains Property Manager as the sole and exclusive manager of each Property for which a Property Addendum is
executed with respect to the property management function to perform such functions as are specified herein and/or on the Property
Addendum related to each such Property. Property Manager hereby accepts such appointment.

 

(b)          Owner
hereby engages and retains Property Manager as the sole and exclusive leasing agent for the leasing of all space in each Property
for which a Property Addendum is executed with respect to the leasing agent function as well as for obtaining ground leases on
any outparcels. Property Manager shall perform such functions as are specified herein and/or on the Property Addendum related to
each such Property. Property Manager hereby accepts such appointment.

 

(c)          Owner
hereby engages and retains Property Manager as the sole and exclusive construction and development manager of each Property for which a Property Addendum is executed with respect to the construction and development management function to perform such functions as are specified herein and/or on the Property Addendum related to
such Property. Property Manager hereby accepts such appointment.

 

(d)          Property
Manager shall act under this Agreement as an independent contractor and not as the Owner’s agent or employee. Property Manager
shall not have the right, power or authority to enter into agreements or incur liability on behalf of the Owner except as expressly
set forth herein or in a Property Addendum. Any action taken by Property Manager which is not expressly permitted by this Agreement
shall not bind the Owner.

 

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3.           
Standards . Property Manager shall in good faith, with due diligence and in accordance with generally accepted management
and construction and development management standards within the geographical areas of the Properties, perform its management, leasing and construction and development
management duties and obligations described herein. Property Manager shall devote its commercially reasonable efforts to performing
its duties hereunder to manage, operate, maintain and lease the Properties in a diligent, careful and professional manner to maximize
all potential revenues to the Owner and to minimize expenses and losses to the Owner. The services of Property Manager are to be
of a scope and quality not less than those generally performed by first class, professional managers of properties similar in type
and quality to the Properties and located in the same market area as the Properties. Property Manager will make available to the
Owner the full benefit of the judgment, experience and advice of the members of Property Manager’s organization. Property
Manager will at all times act in good faith, in a commercially reasonable manner and in a fiduciary capacity with respect to the
proper protection of and accounting for the Owner’s assets.

 

4.       
    Term . This Agreement shall have an initial term of one year from the date hereof and may be renewed
for an unlimited number of successive one-year terms until terminated in accordance with Section 10.

 

5.       
    Duties of Property Manager .

 

(a)          Property
Manager’s duties as property manager for the Properties include the following for each of the Properties (as may be supplemented
with additional duties as detailed in the applicable Property Addendum for each Property) and for Owner, as applicable:

 

(i)          For
Accounting:

 

(A)         Calculate,
bill and collect rental payments and other charges due to the Owner from tenants in the Properties under the respective tenant
leases or otherwise with regard to the Properties. To the extent tenant leases affecting any Property so require, Property Manager
shall timely make or verify any calculations that are required to determine the amount of rent due from tenants, including without
limitation calculating percentage rent, operating expense “pass-throughs” and consumer price index adjustments and,
where required, shall give timely notice thereof to tenants.

 

(B)         Cash
Management.

 

(1)         Property
Manager will establish on behalf of the OP a concentration account (a “Concentration Account”) at a bank to be specified
in writing by Owner, which such Concentration Account will be tied into each Operating Account (as defined below) via a daily automated
two-way sweep. This automated two-way sweep shall work in the following manner: all checks or wires presented on behalf of each
Property’s Operating Account will be funded by having the cash automatically pulled down from the Concentration Account to
fund the check or wire, and all cash deposited into each Property’s Operating Account or lockbox accounts will be automatically
swept up to the Concentration Account on a daily basis.

 

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(2)         Notwithstanding
the preceding, if (a) an Owner is not a wholly owned subsidiary of the REIT or OP and its governing documents so require, or (b)
the payments in respect of a Property are required by a lender to be made into a lockbox account, or (c) if the payments in respect
of a Property are required to be handled otherwise by a contractual restriction agreed to by Owner, then such requirements shall
be followed by Property Manager following written notice thereof by Owner. Funds released from any such lockbox account or other
arrangement to the custody of the Owner shall otherwise follow the above procedures.

 

(3)         Property
Manager will establish on behalf of the Owner for each Property an operating account (an “Operating Account”) at a
bank to be agreed upon in writing by Owner upon receipt of a fully-executed Property Addendum and a W-9 completed by the Owner.
The signature card for the Operating Account shall indicate that Property Manager is dealing with the Operating Account as a fiduciary
of the Owner. The Operating Account and all funds therein shall at all times be the property of the Owner. The Owner shall have
electronic banking system access to the Operating Account which shall permit it to obtain account information and make withdrawals
from the Operating Account.

 

(4)         Notwithstanding
anything to the contrary contained herein, the Owner may direct payments or deposits received by Property Manager or payments or
transfers from the Operating Account for a Property to deviate from the above procedures by a written request to Property Manager.
In such event, Property Manager shall provide the Owner with all information necessary to effect such deposits, transfers or payments.

 

(5)         If
required by state law, Property Manager will deposit security deposits and/or advance rentals in separate accounts in the name
of the Owner at the financial institution designated by Owner with respect to the applicable Property.

 

(6)         Property
Manager agrees to pay all invoices directly from the Operating Account unless directed otherwise by the Owner.

 

(7)         On
or before the 25th day of each month, Property Manager shall prepare and submit an invoice to the Owner accompanied by a computation
of the fees and expense reimbursements due to Property Manager in accordance with this Agreement. The Owner shall have the right
to review such invoice and obtain any supporting documentation with respect thereto from Property Manager. To the extent that the
Owner believes the computation provided by Property Manager is inconsistent with the computation permitted hereunder, the Owner
and Property Manager shall work together in good faith to reach a computation of such fees which is reasonably agreeable to both
parties.

 

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(8)         Without
in any way limiting the foregoing, (i) Property Manager shall not commingle its funds or property or the funds or property
of any other entities for which it provides services with any other funds or property of Owner, and (ii) Property Manager shall
deposit amounts relating to a Property in the respective Property’s Operating Account within one (1) business day of receipt.
Property Manager shall have no proprietary interest in the Clearing Account or any Operating Account, or in any other account authorized
hereby, and all sums collected by Property Manager relating to the Properties and all sums placed in such account or accounts will
be the property of the Owner and to the extent not yet deposited shall be held in trust by Property Manager for the Owner.

 

(C)         Subject
to the terms of this Agreement relating to allocation of expenses, pay fees, charges, expenses and commissions of independent contractors,
architects, engineers, subcontractors, suppliers which contract with Property Manager and Property Manager utilized in the management,
operation, maintenance or repair of the Properties, subject to the Property Manager’s review of same to confirm accuracy
and agreement with same.

 

(D)         Owner
expressly authorizes Property Manager to promptly and diligently enforce the Owner’s rights under any tenant leases affecting
any Property, including without limitation taking the following actions where appropriate: (i) with the Owner’s prior written
consent: (a) terminating tenancies, (b) instituting and prosecuting actions, and evicting tenants, (c) settling, compromising and
releasing such actions or suits or re-instituting such tenancies, and (d) recovering rents and other sums due by legal proceedings
in a court of general jurisdiction; and (ii) without the Owner’s prior written consent: (a) in a magistrates court or other
court of special jurisdiction as applicable, signing and serving such notices as are deemed necessary by Property Manager, and
(b) recovering rents and other sums due by legal proceedings in a magistrates court or similar jurisdiction, in each case Property
Manager shall promptly notify the Owner of such action in writing. If authorized by the Owner, Property Manager shall consult an
attorney for the purpose of enforcing the Owner’s rights or taking any such actions and the Owner shall have the right to
designate counsel for any matter and to control all litigation affecting or arising out of the operation of any Property. Property
Manager shall keep the Owner informed of any dissatisfaction with the law firm or such services or the reasonableness of the cost
thereof.

 

(E)         Prepare
and maintain routine and customary financial and business books and records for Owner and the Properties and to employ and supervise
outside accountants for preparation of income and other tax returns and specialty accounting services for Owner and the Properties.
The preparation of income and other tax returns and the performance of such specialty accounting services shall be supervised by
Property Manager but will be completed at Owner’s expense. Property Manager will use the accrual method of accounting in
accordance with GAAP, with such policies as are to be determined by management subject to Owner’s determination (including,
without limitation, capitalization policies, depreciation and amortization policies, and such other accounting policies as Owner
may direct from time to time).

 

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(F)         Maintain
fixed asset accounting detail and related depreciation.

 

(G)         Property
Manager shall prepare and submit to Owner a proposed operating and capital budget, including an itemized statement of the estimated
receipts and disbursements in reasonable detail, which shall include, without limitation, reasonable detail as to employee expenses
to be reimbursed to Property Manager for the operation, repair and maintenance of the Properties (the “Budget”) and
a marketing and leasing plan on the Properties (a “Plan”) (assuming Property Manager is retained as leasing agent),
in each case for the calendar year immediately following such submission. Each Budget and Plan will be in the form approved by
the Owner prior to the date thereof. A draft Budget and, as applicable, Plan for each Property shall be submitted to Owner on or
prior to October 31 of the year preceding the January 1 of the year to which such budget shall apply. Owner shall have 21 days
after receipt thereof within which to approve or reject in writing such Budget and, as applicable, Plan, any such rejection to
be accompanied by a reasonably detailed explanation of such rejection. Property Manager shall then submit a revised draft Budget
and, as applicable, Plan to Owner within 10 days thereafter. Owner shall have 10 days after receipt thereof to approve or
reject the same in writing, any such rejection to be accompanied by a reasonably detailed explanation of such rejection. The foregoing
process shall then repeat with 10 days between receipt and revision, on Property Manager’s end, and receipt and acceptance
or rejection on Owner’s end, until each Budget and, as applicable, Plan has been approved. If the parties cannot come to
agreement on a Budget and, as applicable, Plan for a Property, Property Manager shall operate the applicable Property on the Budget
and, as applicable, Plan most recently approved by Owner. To the extent any expenditure to be made by Property Manager shall exceed
the applicable line item in such prior year’s Budget by 5% or more, the same shall require Owner’s prior written consent;
provided , that excluded from the foregoing expenditures requiring such consent shall be expenditures related to snow and
ice removal, electricity, insurance premiums and emergency items outside the control of Property Manager. Property Manager shall
provide supporting information reasonably requested by the Owner in connection with their review of any Budget or Plan submitted
by Property Manager for their review.

 

Property Manager shall implement
the Budget and Plan and use its commercially reasonable efforts to ensure that the actual cost of operating the Properties shall
not exceed the Budget. The Budget shall constitute an authorization for Property Manager to expend necessary monies to manage and
operate the Properties in accordance with the Budget and subject to the provisions of this Agreement until a subsequent Budget
is approved. The approval of non-recurring costs and capital improvements in the Budget and Plan shall constitute an authorization
for Property Manager to collect bids for the expenditure and present a final recommendation to the Owner for expenditure of monies
to implement such items called for in the Budget and Plan.

 

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Without affecting any other limitation
imposed by this Agreement and except as may be expressly provided to the contrary elsewhere in this Agreement, Property Manager
shall secure the prior written approval of the Owner prior to incurring any liability or obligation for any item in excess of $10,000
not reflected on the Budget or the Plan approved in writing by the Owner except with respect to emergency items as described in
this subsection (G) or unless another threshold with respect to any matter is specified elsewhere in this Agreement or in a written
directive or authorization of Owner, in which case the threshold for such matter shall be as so set forth.

 

(H)         Pay
wages, salaries, commissions and employee benefits of all On-Site Personnel, including, without limitation, workers’ compensation
insurance, social security taxes, unemployment insurances and other taxes or levies now in force or hereafter imposed with respect
to any such On-Site Personnel, all of which shall be deemed an operating expense of the Properties and shall be in accordance with
approved Budgets.

 

(I)         Deliver
to Owner, within 15 days after the end of each month during the term hereof, the monthly reporting package detailed on Exhibit
A attached hereto, which shall relate to the Properties and the immediately preceding calendar month or any portion thereof.
Such reporting package shall be made on an accrual basis and shall include all such transactions, whether or not reimbursable pursuant
to the provisions hereof.

 

(J)         Deliver
to Owner, within 15 days after the end of each calendar quarter during the term hereof, the quarterly reporting package detailed
on Exhibit B attached hereto, which shall relate to the Properties and the immediately preceding calendar quarter or any
portion thereof. Such reporting package shall be made on an accrual basis and shall include all such transactions, whether or not
reimbursable pursuant to the provisions hereof.

 

(K)         Deliver
to Owner, within 30 days after the end of each calendar year during the term hereof, the annual reporting package detailed on Exhibit
C attached hereto, which shall relate to the Properties and the immediately preceding calendar year or any portion thereof.
Such reporting package shall be made on an accrual basis and shall include all such transactions, whether or not reimbursable pursuant
to the provisions hereof.

 

(L)         File
real, personal and ad valorem (real or personal) property tax returns required to be filed by Owner with respect to the Properties
and pay all such ad valorem taxes and assessments out of the operating accountants of each of the Properties. Property Manager
shall also utilize, on Owner’s behalf, the services of independent tax consultants and attorneys to appeal or challenge any
real, personal and ad valorem (real or personal) property taxes and Property Manager shall manage such process on Owner’s
behalf by supplying needed information and making required payments out of the operating funds for each Property or the separate
funds of Owner.

 

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(ii)         For
Operations. Property Manager shall use commercially reasonable efforts to operate in accordance with the Budget and Plan unless
otherwise specifically approved in writing by Owner and except in the case of emergencies:

 

(A)         Property
Manager will investigate, hire, train, pay, supervise, establish policies for and discharge the On-Site Personnel necessary to
maintain and operate the Properties including, without limitation, property managers and building and maintenance personnel who
shall have experience and education satisfactory to the Owner. Such personnel shall in every instance be agents or employees of
Property Manager and not of the Owner, but Owner shall have the right to approve via the annual budget process, the compensation
of Property Manager’s personnel for which Property Manager has the right to be reimbursed hereunder. Property Manager has
the right to be reimbursed for: (i) On-Site Personnel that are employed at the Properties or at management field offices or corporate
offices, should there be no office located on site. The management field office and corporate office employees shall be charged
to the respective Property on the basis of the percentage of time spent attending to such Property based on actual wages and fringe
benefits, unless the Owner and Property Manager agree in writing to another basis; and (ii) roving maintenance personnel to the
extent needed at the Properties from time to time, and these employees shall be charged to the respective Properties at a reasonable
hourly or monthly rate pre-approved by the Owner and only for the actual and reasonably necessary time spent on such Property by
such personnel. The Owner shall have no right to supervise or direct such agents or employees.

 

Property Manager, at Property Manager’s
sole cost and expense, shall maintain during the term of this Agreement a bond or applicable insurance covering Property Manager
and all persons who handle, have access to or are responsible for Owner’s monies, in an amount and form reasonably acceptable
to Owner. Property Manager shall provide Owner with a certificate or other satisfactory documentation evidencing the existence
and terms of such bond(s) upon execution of this Agreement.

 

Property Manager shall supervise,
and at Owner’s cost and expense, shall retain, to the extent such services are not sufficiently provided by On-Site Personnel,
but in accordance with the Budget, independent contractors, subcontractors, and suppliers to provide for the management, maintenance,
repair and operation of the Properties as well as security functions.

 

(B)         If
commercially reasonable within the geographic area in which a Property is located, to obtain not fewer than three (3) competing
bids for, contract with and supervise onsite management of, contractors.

 

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(C)         Assist
in coordinating the opening and closing of the businesses of tenants, including, but not limited to, obtaining of insurance and
signage approval.

 

(D)         In
accordance with the operating budget, purchase necessary supplies and equipment required for the proper operation, maintenance,
repair and restoration of the Properties.

 

(E)         Supervise
all maintenance activity at the Properties, and make or cause to be made repairs, replacements, renovations and capital improvements
on the Properties.

 

(F)         Contract
and pay charges for utilities used in the operation of the Properties, including, without limitation, water, electricity, gas,
telephone and sewerage services unless carried or covered under the respective tenant’s name.

 

(G)         Contract
for and maintain such policies of commercial general liability and bodily injury and property damage insurance with respect to
the Properties as are acceptable to Owner.

 

(H)         Advertise
the Properties by such means and media and at such costs as are in accordance with the Budget and Plan and as Property Manager
shall deem appropriate (and at Property Manager’s expense, except as set forth in the last sentence of this subsection (H))
to implement an effective leasing program for the Properties on a local and regional basis. To the extent Owner shall request specific
advertising that differs from or is in addition to Property Manager’s planned approach, the incremental cost of such specific
advertising shall be borne by Owner.

 

(I)         Assist
in securing leases with temporary tenants or licensees for use of the Properties.

 

(J)         Actively
promote and market the Properties to potential tenants, current tenants and the general community.

 

(K)         Conduct
complete inspections of the Properties as is prudent to determine that the same are in good order and repair, but no less frequently
than once per calendar quarter, during the term of this Agreement.

 

(L)         Forward
to Owner promptly upon receipt all notices of violation or other notices from any governmental authority, and board of fire underwriters
or any insurance company, and make such recommendations regarding compliance with such notice as shall be appropriate.

 

(M)         Maintain
business-like relations with the tenants of the Properties and respond promptly to tenant complaints in a prudent, businesslike
manner. Property Manager shall maintain a record of all written tenant complaints and Property Manager’s response to such
complaints for no less than one year, which record shall be available for review by Owner.

 

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(N)         Analyze
all bills received for services, work and supplies in connection with the maintaining and operating the Properties, and pay all
such bills and any other amount payable in respect to the Properties. Property Manager shall use commercially reasonable efforts
to pay all bills within the time required to obtain discounts, if any. Owner may from time to time request that Property Manager
forward certain bills to Owner promptly after receipt, and Property Manager shall comply with any such request. Property Manager
will ensure timely 1099 reporting to the IRS, with 1099s filed under Property Manager’s name and Property Manager’s
taxpayer identification number (TIN), listing Property Manager as the “payer”. Property Manager will provide annually
a signed declaration indicating compliance with 1099 reporting; Property Manager will provide this declaration to Owner with the
February Reporting Package. Penalties for misfilings as a result of Property Manager’s negligence are not to be charged to
the property, but are payable by Property Manager.

 

(iii)        Other:

 

(A)         In
accordance with the Budget or as otherwise approved in writing by Owner, employ in-house or outside attorneys, at Owner’s
expense, to handle any legal matters involving the Properties.

 

(B)         Perform
leasing analysis and credit underwriting with respect to prospective tenants (and subtenants and assignees); prepare leases and
other tenant-related documents; and engage in a competitive construction bidding
process for lease-related construction projects expected to exceed $25,000 not otherwise
within the duties of a construction manager (as, for example, pursuant to Section
5(c) below).

 

(C)         Take
such other actions and perform such other functions as Property Manager reasonably deems advisable or necessary for the efficient
and economic management, operation and maintenance of the Properties.

 

(b)          Property
Manager’s duties as leasing agent for any of the Properties indicated on a Property Addendum as being subject to the leasing
agent services as provided herein and subject to the Budget and Plan include the following:

 

(i)          
Leasing Functions . Property Manager will coordinate and negotiate the leasing of the Properties using commercially reasonable
efforts to secure executed leases (both new and renewal) from qualified tenants for available space in the Properties. Such leases
must be consistent with a form and terms approved by Owner unless a tenant requires use of its own lease form. Property Manager
shall be responsible for the hiring of all leasing agents as necessary for the leasing of the Properties, to work with outside
brokers and leasing agents, and otherwise to oversee and manage the leasing process on behalf of Owner. Property Manager’s
duties in this regard shall include, without limitation: (1) the preparation and distribution of listings to potential tenants
and/or their representatives and to reputable and active real estate agents; (2) the supplying of sufficient information to cooperating
brokers and agents to enable them to promote the rental of the Properties; (3) the marketing and promotion of the Properties;
(4) at all times maintaining and updating a merchandising and leasing plan for each Property; and (5) providing an updated leasing
budget and leasing reforecast for the following twelve (12) month period. Additionally, in connection with the budgeting process
referred to above, Property Manager shall submit a yearly leasing budget for approval in accordance (and simultaneously) with the
procedure set forth above for the approval of each Property’s budget by Owner.

 

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(ii)         
Advertising . Owner authorizes Property Manager to advertise and to place signage on the Properties regarding the leasing;
provided , that such signage complies with all applicable governmental laws, regulations and requirements. Property Manager
will provide a marketing package, aerial photographs, demographic reports, site plans, signage and a two-sided flyer for each Property
at Property Manager’s expense consistent with Section 5(a)(ii)(H). Any additional advertising and promotion requested by
Owner will be done at Owner’s expense pursuant to a program and budget agreed upon by Owner and Property Manager.

 

(iii)        
Other Actions . Property Manager will take such other action and perform such other functions as Property Manager or Owner
deems reasonably advisable or necessary for the efficient and economic leasing of the Properties.

 

(c)          Property
Manager’s duties as construction and development manager for the Properties
shall be in accordance with a capital budget established by Owner and Property Manager prior to the commencement of construction
or development activities and shall include the following:

 

(i)          
General . Property Manager shall secure or assist in securing licenses, registrations, or permits required by law and shall
comply with ordinances, laws, orders, codes, rules, and regulations pertaining to building improvements and/or the services described
herein. Property Manager shall secure lien waivers and affidavits and properly file, to the extent required, terminations of notices
of commencement prior to payment to contractors.

 

(ii)         
Bidding . For all projects estimated to cost more than $25,000, Property Manager shall obtain bids from at least three outside
contractors. Property Manager shall select the low bid unless it has supplied Owner with a reasonable justification in writing
for the selection of a bidder other than the low bidder ( e.g. , Property Manager determines in its reasonable discretion
that the bidder to be selected is more likely to complete the job on time, with commercially reasonable workmanship and in the
most efficient manner).

 

(iii)        
New Construction, Tenant Improvements, and Redevelopments . Property Manager
will perform the following duties for construction and development of Improvements
on undeveloped land (“New Construction”) and for construction
and development of Improvements that are to be made at the direction of, or in conformity with lease obligations to, tenants (“Tenant
Improvements”) or for the improvement to Improvements that change the size or nature of such Improvements or for the redevelopment
of Improvements (collectively, “Redevelopments”):

 

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(A)         Provide
updated and detailed project budgets to Owner.

 

(B)         Arrange
for, coordinate, supervise and advise Owner with respect to the selection of architects, contractors, design firms and consultants,
and the execution of design, construction and consulting contracts.

 

(C)         Review
design documents, and drafts thereof, submitted by the architect or other consultants, and notify Owner in writing of any mistakes,
errors or omissions that Property Manager observes in the documents and any recommendations it may have with respect to such mistakes,
errors or omissions; provided , that Property Manager shall not in any manner be responsible for the accuracy, adequacy
or completeness of such documents.

 

(D)         Evaluate
and make recommendations to Owner concerning cost estimates prepared by others.

 

(E)         Review
and evaluate proposed schedules for construction.

 

(F)         Procure
subcontractors through a minimum of three quotes for any jobs estimated to involve in excess of $25,000.

 

(G)         Coordinate
the work of subcontractors.

 

(H)         Monitor
the progress of construction.

 

(I)        
 Endeavor to work with the general contractor to identify any deficiencies in the work performed by subcontractors.

 

(J)        
 Provide Owner with monthly written status reports.

 

(K)         Advise
Owner with respect to alterations and modifications in any design documents submitted by the architect or other consultants that
may be in Owner’s interest, including obtaining advantages in terms of cost savings, scheduling, leasing, operation and maintenance
issues and other matters affecting the overall benefit of the project.

 

(L)         Review
and advise Owner on change order proposals and requests for additional services submitted to Owner.

 

(M)        Schedule,
coordinate, and attend necessary or appropriate project meetings.

 

(N)         Monitor
and coordinate punch list preparation and resolution by the subcontractors.

 

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(O)         Make
recommendations to Owner concerning, and monitor, the use of the site by subcontractors, particularly as it relates to staging
and storage, ingress and egress, temporary signage, fencing, barricades, restrictions on hours of operation, safety considerations
and similar considerations.

 

(P)         Coordinate,
monitor, supervise and advise Owner with respect to preparation, execution, completion and filing of project-related documents,
including, but not limited to, contracts, permit applications, licenses, certifications, zoning requirements, land use restrictions,
governmental filings applicable to the project and any other similar documents.

 

(Q)         Review
and advise Owner with respect to draw requests submitted on the project.

 

(R)         Upon
completion of construction, walk the completed New Construction,
Tenant Improvements, or Redevelopments with Owner to ensure that everything has been completed in accordance with the specifications.
Property Manager shall cause the subcontractors to repair or replace any items that are determined to be deficient during this
walk.

 

(S)         As
instructed by Owner, perform additional related project management functions.

 

(T)         Collect
warranties and operation manuals, certificates, guarantees, as-builts and any similar documentation for the benefit of Owner.

 

(iv)        
New Construction and Redevelopments . In addition, Property Manager will perform
the following duties with respect to New Construction and Redevelopments:

 

(A)         Provide
Owner with a budget for each Improvement to be built prior to beginning construction
of the respective Improvement.

 

(B)         Meet
on a regular basis with Owner’s leasing agents and representatives of prospective tenants.

 

(C)         Arrange
for, coordinate, supervise and advise Owner with respect to various development services prior to design and construction
of the Project, including due diligence, site investigations, land use and zoning matters, and similar development services.

 

(v)         
Tenant Improvements . In addition, Property Manager will perform the following duties related to Tenant Improvements:

 

(A)         Arrange
for and supervise the performance of all installations and improvements in space leased to any tenant which are either expressly
required under the terms of a Lease of such space or which are customarily provided to tenants.

 

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(B)         Meet
with tenants and prospective tenants and their architects, engineers, consultants and contractors to facilitate design and construction
of leasehold improvements.

 

(C)         Maintain
separate files as to each tenant, and thereby document the entire design and construction
process for each tenant.

 

(D)         Compile
and disseminate such data regarding each tenant as Owner may reasonably require.

 

(vi)         
Duties with Respect to Tenant-Directed Improvements . Property Manager will supervise and facilitate tenant installations
performed by the tenant and/or tenant’s contractors, including:

 

(A)         Review
and evaluate lease exhibit language that identifies the scope and nature of tenant construction
of the improvements.

 

(B)         Review
tenant construction documents for compliance with landlord criteria and requirements
applicable to the improvements.

 

(C)         Review
and evaluate proposed schedules for tenant construction.

 

(D)         Coordinate
delivery of shell space to tenants as required by the tenant’s lease.

 

(E)         Monitor
the progress of tenant construction including but not limited to compliance with
scheduling requirements, compliance with rules and regulations of the Property, verify that tenant has obtained proper permits,
etc., coordinating requests for tenant improvement allowance draws.

 

(F)         Maintain
appropriate files and records as to each project documenting the design and construction
process for each tenant in a manner consistent with Property Manager’s record retention guidelines.

 

(vii)     
   Duties with Respect to All Improvements . Property Manager will supervise all Improvement projects, such supervision
to include, but not be limited to, preparation of budgets, plans, bidding, subcontractor selection, material selection, job supervision,
collection of lien waivers, sworn statements, affidavits and the like. Property Manager shall require such lien waivers, sworn
statements, affidavits and similar documentation as a condition to disbursement.

 

(d)          
Other . Property Manager shall in all events comply with the reasonable requests of Owner related to property management
of, leasing of, and construction and development management of the Improvements to
be made to, the Properties. Owner shall maintain sufficient funds in an account or accounts so that Property Manager will have
funds available to pay all obligations contemplated hereunder when due. Under no circumstances shall Property Manager have any
obligations or duty to advance funds to or for the account of Owner.

 

    	14

    	 

    

 

(e)          
Ownership Agreements . Owner agrees to obtain and review copies of all (1) agreements of limited partnership, joint venture
partnership agreements and operating agreements of Owner and its affiliates as well as the articles of incorporation, bylaws, and
registration statement on Form S-11 (No. 333-178651) of REIT, including all prospectus supplements and post-effective amendments
thereto (collectively, the “Ownership Agreements”) and (2) mortgages on all Properties and inform Property Manager
of any restrictions relating to property use arising therefrom. Property Manager will use reasonable care to avoid any act or omission
which, in the performance of its duties hereunder, in any way conflicts with the terms of the Ownership Agreements or the mortgages
in the absence of the express direction of the REIT’s board of directors, and Property Manager shall promptly notify Owner
if any such conflict arises.

 

(f)          
Periodic Meetings . As reasonably required by Owner, Property Manager, its personnel or contractors engaged or involved
in the management, operation, leasing or construction and development management
of the Properties shall meet to discuss the historical results of operations, to consider deviations from any budget, and to discuss
any other matters so requested by the Owner upon reasonable notice from Owner.

 

6.          
Compensation and Expense Reimbursement .

 

(a)          For
each Property for which Property Manager provides property management services, Owner shall pay Property Manager a monthly management
fee equal to four and one-half percent (4.5%) of the Gross Receipts (as defined below) for that month, payable from that month’s
receipts. “Gross Receipts” means (i) all fixed and minimum rent, percentage rent and license fees paid by tenants and
other occupants of each Property, (ii) the profit of Owner derived from the sale of electricity (i.e., the spread between the wholesale
and retail prices of electricity that is re-sold to tenants of the Properties), utilities and heating, ventilation and air conditioning
to tenants and other occupants of each Property, (iii) all amounts paid by tenants and other occupants of each Property for common
area maintenance, real estate taxes, insurance, interest and any other payments of any nature (including attorneys’ fees
and late fees) made by any such tenants or other occupants, and (iv) proceeds of rent insurance.

 

(b)          For
each Property for which Property Manager provides leasing services, Owner shall pay Property Manager a leasing fee equal to two
percent (2%) of the sum of all rent payments that a tenant will be contractually obligated to make under a renewal lease at the
time of the execution of such renewal lease and five percent (5%) of the sum of all rent payments that a tenant will be contractually
obligated to make under a new lease at the time of the execution of such new lease. A leasing fee will be payable upon the execution
of the applicable lease. Property Manager may pay a portion of its leasing fees to any third parties to whom Property Manager subcontracts
the performance of its leasing duties as contemplated by Section 5(b)(1).

 

(c)          For
each Improvement with respect to which Property Manager provides construction and
development management services as set forth in Section 5(c) (other than as provided in the next sentence), Property Manager shall
be entitled to a fee equal to two percent (2%) of the cost of such Improvement. For each Tenant Improvement with respect to which
Property Manager provides construction management services as set forth in Section
5(c)(v), Property Manager may in its discretion charge a fee equal to up to five percent (5%) of the cost of such Tenant Improvement.

 

    	15

    	 

    

 

(d)          In
connection with the fees set forth in subsections (a), (b) and (c) of this Section 6, Owner shall pay such fees to Property Manager
in cash or in shares of common stock (“Common Shares”) of REIT, or a combination of both, the form of payment to be
determined in the sole discretion of Property Manager. For the purposes of the payment of such fees in Common Shares, each Common
Share will be valued as set forth in the final prospectus of the Company for its initial public offering filed pursuant to Rule
424(b) of the Securities Act of 1933, as amended.

 

(e)          Property
Manager will pay such other reimbursable expenses and costs as Owner has approved and deems advisable or necessary for the efficient
and economic management and leasing of the Properties through its annual budgets or as otherwise provided for in this Agreement
( e.g. , for marketing or leasing programs that exceed in scope that which Property Manager would normally utilize, as provided
for in Sections 5(a)(ii)(H) and 5(b)(ii)). Owner shall reimburse Property Manager for such costs and expenses, which shall include,
to the extent included in the applicable Property budgets or a general property management and leasing budget to be agreed upon,
personnel costs for On-Site Personnel providing direct services for the Properties and for roving maintenance personnel to the
extent needed at the Properties from time to time, cost of travel and entertainment, printing and stationery, advertising, marketing,
signage, long distance phone calls and other expenses that are directly related to the management of specific Properties. Notwithstanding
the foregoing, Owner shall not reimburse Property Manager for its general overhead costs or, other than as set forth in this subsection
6(e), for the wages and salaries and other employee-related expenses of its employees.

 

7.          
Insurance. Property Manager shall obtain and keep in full force and effect at Owner’s expense insurance (1)
on the Properties, and (2) on activities at the Properties against such hazards as Owner and Property Manager shall deem appropriate
and as may be required under any mortgage or other loan documents binding upon Owner. In any event, Property Manager shall procure,
for the Properties for which Property Manager is property manager, insurance sufficient to comply with the leases and the Ownership
Agreements. All liability policies shall provide sufficient insurance satisfactory to both Owner and Property Manager and shall
contain waivers of subrogation for the benefit of Property Manager and the applicable Owner.

 

(a)          Property
Manager shall obtain and keep in full force and effect, in accordance with the laws of the state in which each Property is located,
workers’ compensation insurance covering all employees of Property Manager at the Properties and all persons engaged in the
performance of any work required hereunder. Property Manager shall also obtain and keep in full force and effect, in accordance
with the laws of the state in which each Property is located, employer’s liability, employee theft, commercial general liability,
and umbrella insurance, and Property Manager shall furnish Owner certificates of insurers naming Owner as co-insureds and evidencing
that such insurance is in effect and that insurer will provide directly to Owner no less than 30 days’ notice of any cancellation
or non-renewal. If any work under this Agreement is subcontracted as permitted herein, Property Manager shall include in each subcontract
a provision that the subcontractor also shall furnish Owner, as appropriate, with such a certificate evidencing coverage (and any
other coverage Property Manager deems appropriate in the circumstances) and the naming of Owner as co-insureds and evidencing that
such insurance is in effect and that insurer will provide directly to Owner no less than 30 days’ notice of any cancellation
or non-renewal, as well as indemnification as is customary. The cost of such insurance procured by Property Manager shall be reimbursable
to the same extent as provided in this Agreement.

 

    	16

    	 

    

 

(b)          Property
Manager shall cooperate with and provide reasonable access to the Properties to representatives of insurance companies and insurance
brokers with respect to insurance which is in effect or for which application has been made. Property Manager shall use its good
faith efforts in a commercially reasonable manner to comply with all requirements of insurers.

 

(c)          Property
Manager shall promptly investigate and shall report in detail to Owner and the applicable insurance carriers all accidents, claims
for damage relating to the ownership, operation or maintenance of the Properties, and any damage or destruction to the Properties
and the estimated costs of repair thereof, and shall prepare for approval by Owner all reports required by the applicable insurance
company in connection with any such accident, claim, damage, or destruction. Owner shall reimburse Property Manager’s third
party costs in connection therewith. Such reports shall be given to Owner promptly and any report not so given within 10 days after
the occurrence of any such accident, claim, damage or destruction shall be noted in the monthly reports delivered to Owner. Property
Manager is authorized to settle any claim against an insurance company arising out of any policy and, in connection with such claim,
to execute proofs of loss and adjustments of loss and to collect and provide receipts for loss proceeds using commercially reasonable
good faith efforts.

 

8.          
Liability of Property Manager . Property Manager shall not be liable for any errors in judgment or for mistakes of
fact or of law or for anything which it may in good faith do or refrain from doing, except in the case of gross negligence, fraud
or willful misconduct.

 

9.          
Indemnity . Owner shall indemnify Property Manager and its managers, employees and officers against and agrees to
defend, protect, hold and save them free and harmless from any liability or expenses (including reasonable attorney’s fees
and court costs) arising out of injuries or damages to persons or property by reason of any cause relating to the Properties, except
to the extent caused by the gross negligence, fraud or willful misconduct and which is not otherwise covered by insurance held
by Owner. Owner shall name Property Manager as an “additional insured” or “co-insured” on any and all liability
insurance policies for the Properties. Property Manager shall indemnify Owner and its employees and officers against and agrees
to defend, protect, hold and save them free and harmless from any liability or expenses (including reasonable attorney’s
fees and court costs) arising out of injuries or damages to persons or property by reason of any cause relating to the Properties
caused by the gross negligence, fraud or willful misconduct, which is not otherwise covered by insurance held by Owner.

 

    	17

    	 

    

 

10.        
Termination . This Agreement may be terminated by either party upon thirty (30) days’ written notice, in
toto or only with respect to any Property; provided , that such termination shall not affect any rights or obligations
accrued to either party prior to termination (subject to any offsetting claims for damages), including, but not limited to, payment
of Management Fees earned to the date of termination ( provided , that if termination occurs before a construction
or development project is completed, the construction and development management
fee to be earned shall be prorated based upon the reasonably estimated portion of the applicable project that had been completed
up to the date of termination). If this Agreement is terminated, only Management Fees with respect to any Properties that are subject
to such termination and that have accrued prior to the termination date shall be due to Property Manager. Notwithstanding anything
to the contrary contained in this Agreement, if either Owner or Property Manager defaults in performing any of its obligations
under this Agreement, the other party may terminate this Agreement effective upon delivery of notice of such default. The indemnification
obligations of the parties hereunder shall survive the expiration or termination of this Agreement. Property Manager’s obligations
under this Agreement for physical property management, leasing and construction and
development management may, at Owner’s election, terminate as to any particular Property upon its sale; provided ,
that Property Manager’s obligations for the performance of accounting and other so-called “back office functions”
shall terminate only at such time as a final tax return with respect to the applicable Property has been prepared and filed and
such customary and ordinary information related to the Property or Properties has been provided to Owner. Property Manager shall
cooperate subsequent to any termination of this Agreement as to a particular Property to provide final property reconciliations
and other reports as reasonably requested by Owner.

 

11.         
Property Manager’s Obligations After Termination . Upon the termination of this Agreement, Property Manager
shall have the following duties:

 

(a)          Property
Manager shall deliver to Owner, or its designee, all books and records (including data files in magnetic or other similar storage
media but specifically excluding any licensed software) with respect to the Properties.

 

(b)          Property
Manager shall transfer and assign to Owner, or its designee, or terminate upon Owner’s direction, all service contracts (designated
by Owner for transfer and assignment) and personal property relating to or used in the operation and maintenance of the Properties,
except personal property paid for and owned by Property Manager. Property Manager shall also, for a period of sixty (60) days immediately
following the date of such termination (with respect to this entire Agreement or any Property terminated as being subject to this
Agreement), make itself available to consult with and advise Owner, or its designee, regarding the operation, maintenance and leasing
of the Properties at no additional cost to Owner.

 

(c)          Property
Manager shall render to Owner an accounting of all funds of Owner in its possession and shall deliver to Owner a statement of Management
Fees claimed to be due Property Manager and shall cause funds of Owner held by Property Manager relating to the Properties to be
paid to Owner or their designees and shall assist in the transferring of approved signatories on all Accounts.

 

12.         
No Obligation to Third Parties . None of the obligations and duties of Property Manager under the Agreement shall
in any way or in any manner be deemed to create any obligations of Property Manager to any third party with the exception of Owner.

 

    	18

    	 

    

 

13.         
Additional Services . The services contemplated hereunder are normal and customary property management, leasing and
general and construction and development management services. If Property Manager
is required or requested to perform additional services beyond the scope of this Agreement, then Owner shall pay Property Manager
fees for these additional services at market rates as mutually agreed upon in advance by the parties.

 

14.         
Property Manager’s Action on Tenant’s Default . If the reasonably expected costs are less than a threshold
to be agreed upon by Property Manager and Owner with respect to each Property (or with respect to leases or contracts less than
certain thresholds with respect to each Property), Property Manager shall have the right, in its own name or in the name of Owner,
to take any and all actions, including distraint, which Property Manager deems advisable and which Owner shall have the right to
take, in the event of any tenant’s breach of any covenant, provision or condition binding upon such tenant under its lease
with Owner. Nothing in this paragraph shall be deemed to require Property Manager to institute legal action against any tenant.
If the reasonably expected costs exceed the agreed-upon thresholds, then Owner shall only be responsible for such costs if it pre-approves
such actions. In addition, if Owner desires to commence legal action notwithstanding Property Manager’s recommendation to
the contrary, it shall pay for all costs and reasonable attorneys’ fees in connection therewith.

 

15.         
Binding Effect . This Agreement and all the provisions hereof shall be binding upon, and shall inure to the benefit
of, the parties hereto and their respective successors and assigns.

 

16.         
Entire Agreement . This Agreement supersedes all agreements previously made between the parties relating to its subject
matter. There are no other understandings or agreements between them.

 

17.         
Assignment . Property Manager may delegate partially or in full its duties and rights under this Agreement but only
with the prior written consent of Owner. Except as provided in the immediately preceding sentence, this Agreement shall be binding
upon and shall inure to the benefit of the parties and their respective successors and assigns.

 

18.         
Amendments . This Agreement may be amended only by an instrument in writing signed by the party against whom enforcement
of the amendment is sought.

 

19.         
Other Business . Nothing herein contained shall prevent Property Manager from engaging in other activities or business
ventures, whether or not such other activities or ventures are in competition with Owner or the business of Owner, including, without
limitation, property management activities for other parties (including other REITs) and the provision of services to other programs
advised, sponsored or organized by Property Manager or its affiliates or third parties; nor shall this Agreement limit or restrict
the right of any manager, officer, employee, or member of Property Manager or its affiliates to engage in any other business or
to render services of any kind to any other partnership, corporation, firm, individual, trust or association. Property Manager
may, with respect to any investment in which the Owner is a participant, also render advice and service to each and every other
participant therein. Property Manager shall report to the board of directors of REIT the existence of any condition or circumstance,
existing or anticipated, of which it has knowledge, which creates or could create a conflict of interest between Property Manager’s
obligations to Owner and its obligations to or its interest in any other partnership, limited liability company, corporation, firm,
individual, trust or association.

 

    	19

    	 

    

 

20.         
Notices . All notices under this Agreement shall be in writing and delivered personally or mailed by certified mail,
postage prepaid, addressed to the parties at their last known addresses. All notices, approvals, consents and other communications
hereunder shall be in writing, and, except when receipt is required to start the running of a period of time, shall be deemed given
when delivered in person or on the fifth day after its mailing by either party by registered or certified United States mail, postage
prepaid and return receipt requested, to the other party, at the addresses set forth after their respect name below or at such
different addresses as either party shall have theretofore advised the other party in writing in accordance with this Section.

 

	OP:	United Realty Capital Operating Partnership, L.P.,
	 	44 Wall Street
	 	2 nd Floor
	 	New York, New York 10005
	 	Attention:  Jacob Frydman, Chief Executive Officer
	 	 
	With a copy to:	Proskauer Rose LLP
	 	Eleven Times Square
	 	New York, New York 10005
	 	Attention:	Peter M. Fass, Esq.
	 	 	James P. Gerkis, Esq.
	 	 
	REIT:	United Realty Trust Incorporated
	 	44 Wall Street
	 	2 nd Floor
	 	New York, New York 10005
	 	Attention:  Jacob Frydman, Chief Executive Officer
	 	 
	With a copy to:	Proskauer Rose LLP
	 	Eleven Times Square
	 	New York, New York 10005
	 	Attention:	Peter M. Fass, Esq.
	 	 	James P. Gerkis, Esq.
	 	 
	Property Manager:	URA Property Management LLC
	 	44 Wall Street
	 	2 nd Floor
	 	New York, New York 10005
	 	Attention:  Jacob Frydman, Chief Executive Officer
	 	 
	With a copy to:	Proskauer Rose LLP
	 	Eleven Times Square
	 	New York, New York 10005
	 	Attention:	Peter M. Fass, Esq.
	 	 	James P. Gerkis, Esq.

 

    	20

    	 

    

 

21.         
Non-Waiver . No delay or failure by either party to exercise any right under this Agreement, and no partial or single
exercise of that right, shall constitute a waiver of that or any other right, unless otherwise expressly provided herein.

 

22.         
Headings . Headings in this Agreement are for convenience only and shall not be used to interpret or construe its
provisions.

 

23.         
Severability . If any term, covenant or condition of this Agreement or the application thereof to any Person or circumstance
shall, to any extent, be held to be invalid or unenforceable, then the remainder of this Agreement, or the application of such
term, covenant or condition to persons or circumstances other than those as to which it is held to be invalid or unenforceable,
shall not be affected thereby, and each term, covenants or condition of this Agreement shall be valid and shall be enforced to
the fullest extent permitted by law.

 

24.         
Governing Law . This Agreement shall be construed in accordance with and governed by the laws of the State of New
York. Any action to enforce this Agreement or an action for a breach of this Agreement shall be maintained in a binding arbitration
proceeding before the American Arbitration Association in New York, NY.

 

25.         
Counterpart . 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.

 

26.         
Audit Right . Property Manager shall cooperate with the REIT’s independent auditors with respect to the annual
audit of the REIT for the purpose of expressing an opinion on the financial statements of the REIT (the “Annual REIT Audit”).
In addition, the REIT shall have the right to conduct an audit of Property Manager’s books and records solely with respect
to the fees and expense reimbursements relating to the services provided pursuant to this Agreement (the “Fee Audit”).
The REIT may conduct the Fee Audit by using its own internal auditors or by employing independent auditors no more than once per
year. Costs associated with conducting such Fee Audits by internal or independent auditors, and costs of the Annual REIT Audit,
shall be borne by REIT. If any Fee Audit conducted by or on behalf of REIT reveals a discrepancy in excess of ten percent (10%),
and greater than $10,000, for the aggregate fees and expense reimbursements payable during the period under audit pursuant to the
Fee Audit, Property Manager shall be responsible for the reasonable expenses of such audit.

 

Signatures on next page.

 

    	21

    	 

    

 

IN WITNESS WHEREOF, the parties have executed
this Agreement as of the date first above written.

 

	 	On behalf of “OWNER”:
	 	 
	 	OP:
	 	 
	 	UNITED REALTY CAPITAL OPERATING PARTNERSHIP, L.P.,
	 	a Delaware limited partnership
	 	 
	 	By:	UNITED REALTY TRUST INCORPORATED,
	 	 	a Maryland corporation,
	 	 	 
	 	Its General Partner
	 	 
	 	By:	 
	 	 	Jacob Frydman, Chief Executive Officer
	 	 	 
	 	REIT:
	 	 
	 	UNITED REALTY TRUST INCORPORATED
	 	a Maryland corporation
	 	 	 
	 	By: 	 
	 	 	Jacob Frydman, Chief Executive Officer
	 	 	 
	 	Property Manager:
	 	 
	 	URA PROPERTY MANAGEMENT LLC,
	 	a Delaware limited liability company
	 	 	 
	 	By:	UNITED REALTY ADVISOR HOLDINGS LLC,
	 	 	a Delaware limited liability company,
	 	 	 
	 	Its Managing Member
	 	 
	 	By:	 
	 	 	Jacob Frydman, Chief Executive Officer

 

    	 

    	 

    

 

EXHIBIT A

MONTHLY REPORTING PACKAGE

 

For the current month and year to date, statements presenting,
on a comparative basis, actual to budget (and/or forecast or other projections), including variance explanations for material variances:

 

	 	·	Executive summary (operations, leasing, capital, tenant/market issues, other).

 

	 	·	Balance sheet.

 

	 	·	Income statement.

 

	 	·	Aged receivables and delinquencies report.

 

	 	·	Rent rolls (as requested in writing by Owner).

 

	 	·	Month-to-date and year-to-date variance report with explanations (budget to actual and actual to previous year actual).

 

	 	·	List of any material accrual adjustment that may have been missed on the last business day of each month.

 

	 	·	Leasing update.

 

	 	·	Consolidated financial statements.

 

	 	·	Reforecast operating projections and cash flow.

 

	 	·	Any additional reports that Owner shall reasonably request.

 

    	 

    	 

    

 

EXHIBIT B

QUARTERLY REPORTING PACKAGE

 

	 	·	All items in the monthly reporting package.

 

	 	·	Quarter-to-date variance reports with explanations compared to budget and same period prior year.

 

	 	·	Copy of cash receipts ledger entries for such period, if requested.

 

	 	·	The originals (or copies, as Owner may request) of all contracts entered into by Property Manager on behalf of Owner during such period, if requested.

 

	 	·	Consolidated financial statements.

 

	 	·	Such other reports as may be required by Owner.

 

    	 

    	 

    

 

EXHIBIT C

ANNUAL REPORTING PACKAGE

 

	 	·	All items in the quarterly reporting package which shall include annual operating statements and a list of variances and explanations of material variances (budget to actual and actual to previous year actual).

 

	 	·	All information required for tax filings, as determined by Owner.

 

	 	·	Certifications of assessment, testing and compliance with internal controls.

 

	 	·	Any other reports reasonably requested by Owner.

 

    	 

    	 

    

 

FORM OF PROPERTY ADDENDUM

 

PROPERTY DESCRIPTION:

 

Property Name:

 

Street Address:

 

City, State, Zip Code:

 

County:

 

Owner Name:

 

Owner Tax ID#:

 

Tax Parcel ID #:

 

SERVICES TO BE PROVIDED AND MANAGEMENT FEES TO BE CHARGED:

 

	 	 ̈	Property management services, as specified in Section 5(a) of the Agreement, with:

 

_____ No changes

 

_____ Changes as follows: _______________________________________________________________________

 

_____________________________________________________________________________________________

 

_____________________________________________________________________________________________

 

Threshold pursuant to Section 14: _________________________________________________________________________

 

_____________________________________________________________________________________________

 

_____________________________________________________________________________________________

 

	 	 ̈	Property management fees, as specified in Section 6(a), with:

 

_____ No changes

 

_____ Changes as follows: _______________________________________________________________________

 

 

    	C- 2

    	 

    

 

_____________________________________________________________________________________________

 

_____________________________________________________________________________________________

 

	 	 ̈	Leasing services, as specified in Section 5(b) of the Agreement, with:

 

_____ No changes

 

_____ Changes as follows: _______________________________________________________________________

 

_____________________________________________________________________________________________

 

_____________________________________________________________________________________________

 

	 	 ̈	Leasing fees, as set forth in Section 6(b) of the Agreement, with:

 

_____ No changes

 

_____ Changes as follows: _______________________________________________________________________

 

_____________________________________________________________________________________________

 

_____________________________________________________________________________________________

 

Co-Brokers : As leasing agent for the Properties, Property
Manager may cooperate with independent real estate brokers or agents. If Property Manager hires a co-broker in order to assist
Property Manager in securing a tenant or if an opportunity is brought to Property Manager by an independent broker, Property Manager
shall be paid in accordance with the Agreement and the co-broker’s commission will be the responsibility of Property Manager.
If the co-broker’s fee would exceed what Property Manager would otherwise be entitled to pursuant to the above fee schedule,
such co-broker’s commission may be paid only upon written approval of Owner.

 

	 	 ̈	Construction and development management services, as specified in Section 5(c) of the Agreement, with:

 

_____ No changes

 

_____ Changes as follows (add attachments as necessary):
______________________________________________

 

_____________________________________________________________________________________________

 

_____________________________________________________________________________________________

 

    	C- 3

    	 

    

 

_____________________________________________________________________________________________

 

	 	 ̈	Construction and development management fees, as set forth in Section 6(c) of the Agreement, with:

 

_____ No changes

 

_____ Changes as follows: _______________________________________________________________________

 

_____________________________________________________________________________________________

 

_____________________________________________________________________________________________

 

    	C- 4Exhibit 10.1

 

ThermoEnergy
Company

 

Securities
Purchase Agreement

 

This Securities Purchase Agreement (the
“Agreement”) is made by and between ThermoEnergy Company, a Delaware corporation (the “Company”)
and the person or entity executing the Investor’s Signature Page hereto (the “Investor”) as of the 11th
day of June 2012.

 

Whereas, the Company has offered to issue
and sell to “accredited investors” (as defined in Rule 501 of Regulation D promulgated under the Securities Act of
1933 (the “Securities Act”) (each, an “Accredited Investor) (the “Offering”)
a minimum of twenty-four (24) and up to a maximum of one hundred twenty-eight (128) units (the “Units”), subject
to an over-allotment of up to an additional twenty-five (25) Units, at the purchase price of $62,500 per Unit (the "Purchase
Price"). Each Unit consists of six hundred twenty-five thousand (625,000) shares (the “Shares”) of
the Common Stock, par value $0.001 per share of the Company (the “Common Stock”) and a Common Stock Purchase
Warrant in substantially the form attached hereto as Exhibit A (a “Warrant”) for the purchase, on or before
the fifth anniversary of the Initial Closing Date (as hereinafter defined), of six hundred twenty-five thousand (625,000) shares
of Common Stock (the “Warrant Shares”) at an exercise price of $0.15 per share; and

 

Whereas, the Investor desires to purchase
from the Company, and the Company is willing to issue and sell to the Investor, on the terms and conditions herein set forth, that
number of Units set forth on the Investor’s Signature Page (the “Purchased Units”);

 

Now, therefore, in consideration of the
foregoing and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Company
and the Investor hereby agree as follows:

 

1.          Purchase
and Sale of the Purchased Units; Purchase Price Adjustment; Escrow.

 

(a)          The
Company hereby agrees to issue and sell to the Investor, and the Investor hereby agrees to purchase from the Company the Purchased
Units, at the Purchase Price, subject to the terms and conditions set forth herein.

 

(b)          In
the event, and on each such occasion on or before the date that is eighteen (18) months after the Initial Closing Date, the Company
shall issue and sell any shares of Common Stock or securities convertible into shares of Common Stock (other than Excluded Issuances
(as hereinafter defined)) at a price per share of Common Stock less than $0.10 (a “Dilutive Issuance”), the
Purchase Price shall be retroactively adjusted, effective as of the Initial Closing Date, to an amount equal to the price per share
at which such shares were issued in the Dilutive Issuance (the “Reduced Purchase Price”) and, promptly following
such Dilutive Issuance, the Company shall issue and deliver to the Investor, for no additional consideration, that number of additional
shares of Common Stock (which, upon such issuance and delivery shall be deemed to be Shares for purposes of this Agreement) determined
by (i) multiplying $62,500 by the number of Purchased Units, (ii) dividing the product of such multiplication by
the Reduced Purchase Price, and (iii) subtracting the result of such division from the product of 625,000 times the number
of Purchased Units. Such calculation may be set forth as:

 

    	 

    	 

    

 

N = [($62,500 x U)/RP] – (625,000 x U)

 

Where: N = the number of additional Shares to be issued

U = the number of Purchased Units

RP = the Reduced Purchase Price

 

    	2

    	 

    

 

For purposes of this Agreement, the following
issuances of shares of Common Stock shall be deemed “Excluded Issuances” and no adjustment to the Purchase Price
shall be made as a result of such issuances:

 

		(i)	shares of Common Stock included
in the Units;

		(ii)	Additional Shares issued
pursuant to this Section 1(b);

		(iii)	Warrant Shares;

		(iv)	shares of Common Stock issuable
or issued (in transactions with primarily non-financing purposes) to employees, directors or consultants of the Company
directly or pursuant to a stock option plan or restricted stock plan approved by the Board of Directors of the Company (“Approved
Share Plan”);

		(v)	shares of Common Stock issued
in connection with acquisition transactions;

		(vi)	shares of Common Stock issued
or issuable to financial institutions or lessors in connection with commercial credit arrangements, equipment financing or similar
transactions;

		(vii)	shares of Common Stock issued
upon conversion of shares of the Company’s Preferred Stock, par value $0.10 per share;

		(viii)	shares of Common Stock issued
pursuant to options, warrants, notes or other rights to acquire Common Stock outstanding on the Initial Closing Date (collectively,
“Convertible Securities”);

		(ix)	stock splits, stock dividends
or similar transactions; and

		(x)	shares of Common Stock issued
in consideration for the surrender and cancellation of outstanding warrants pursuant to agreements entered into by the Company
on or before the Initial Closing Date (and disclosed in writing to the Investor).

 

Provided, that with respect to Excluded Issuances
pursuant to clause (iv) above, (A) all such issuances (taking into account the shares of Common Stock issuable upon exercise of
any such options) after the Initial Closing Date pursuant to such clause do not, in the aggregate, exceed more than five percent
(5%) of the Common Stock issued and outstanding immediately prior to the Initial Closing Date and (B) any such options or restricted
stock outstanding as of the Initial Closing Date are not amended to increase the number of shares issuable thereunder, to lower
the exercise price of any options or to otherwise materially change the terms or conditions thereof. In the event of a violation
of sub-clause (A) or (B) herein, the issuance(s) that caused such violation and in the event of a violation of sub-clause (B),
any issuances thereafter, in each case shall no longer be deemed to be Excluded Issuances.

 

Provided, further, that with respect to Excluded
Issuances pursuant to clauses (viii) and (x) above, such Convertible Securities (other than standard options to purchase Common
Stock and restricted stock issued pursuant to an Approved Share Plan that are covered by clause (iv) above) are not amended on
or after the Initial Closing Date to increase the number of shares of Common Stock issuable thereunder or to lower the exercise
or conversion price thereof or otherwise materially change the terms or conditions thereof (it being understood that any increase
in the number of such securities or decrease in the exercise price, exchange price or conversion price that are provided for under
the terms of such securities as of the Initial Closing Date shall not be deemed an amendment to such securities).

 

(c)          Until
such time as the conditions to Closing set forth in Section 5 and 6 have been satisfied, the Investor’s funds shall be held
in a non-interest bearing escrow account with Corporate Stock Transfer (the “Escrow Agent”) and American National
Bank (the “Escrow Bank Agent”).

 

    	3

    	 

    

 

2.          Closing;
Delivery.

 

(a)          The
purchase and sale of the Purchased Units shall take place remotely via the exchange of documents and signatures on such date
and at such time (the “Initial Closing Date”) and at such place as the Company and Dawson James Securities,
Inc., the Company’s placement agent (“Dawson James”), shall mutually determine after the conditions set
forth in Sections 5 and 6 have been satisfied (which time and place are designated as the “Closing”). 

 

(b)          At
the Closing, the Company shall deliver to the Investor (i) the Warrants constituting part of the Purchased Units and (ii) evidence
that the Company has issued irrevocable instructions to Registrar & Transfer Company, the transfer agent for the Common Stock
(the “Transfer Agent”) to issue to the Investor a certificate representing the Shares constituting part of the
Purchased Units and to reserve and set aside the Warrant Shares for issuance upon exercise of the Warrants in accordance with their
terms, against payment of the Purchase Price therefor by a check or wire transfer of immediately available funds to the account
designated by the Company.

 

(c)          At
or after the Closing, the Company may sell, on the same terms and conditions as those contained in this Agreement, any Units not
issued and sold on or prior to the date of the Closing, to one or more additional Accredited Investors (the “Additional
Investors”), provided that (i) such sales are consummated on or prior to August 17, 2012, (ii) each Additional Investor
shall execute and deliver to the Company a Securities Purchase Agreement in substantially the same form as this Agreement and (iii)
the aggregate number of Units (including the Purchased Units) issued and sold to the Investor and the Additional Investors shall
not exceed one hundred fifty-three (153).

 

(d)          In
the event the conditions to Closing set forth in Sections 5 and 6 hereof are not satisfied on or before August 17, 2012, the Investor’s
funds shall be promptly returned to the Investor by the Escrow Agent, without interest or offset.

 

3.          Representations
and Warranties of the Company. The Company hereby represents and warrants to the Investor as follows:

 

(a)          Organization
and Qualification. The Company is duly incorporated, validly existing and in good standing under the laws of the State
of Delaware, with the requisite power and authority to own and use its properties and assets and to carry on its business as currently
conducted. The Company is not in violation of any of the provisions of its Certificate of Incorporation (as amended to the date
of Closing, the “Charter”) or By-Laws (as amended to the date of Closing, the “By-Laws”).
The Company is duly qualified to conduct its business and is in good standing as a foreign Company in each jurisdiction in which
the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be
so qualified or in good standing, as the case may be, would not, individually or in the aggregate, have or reasonably be expected
to result in a Material Adverse Effect, and no proceedings have been instituted in any such jurisdiction revoking, limiting or
curtailing, or seeking to revoke, such power and authority or qualification. For purposes of this Agreement, the term “Material
Adverse Effect” shall mean any of (i) a material and adverse effect on the legality, validity or enforceability of any
of this Agreement or the Warrants (collectively, the “Transaction Documents”), (ii) a material and adverse effect
on the results of operations, assets, prospects, business or condition (financial or otherwise) of the Company, or (iii) a material
impairment of the Company’s ability to perform on a timely basis any of its obligations under any Transaction Document.

 

    	4

    	 

    

 

(b)          Corporate
Authority. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated
by this Agreement, to issue and sell the Units and to carry out its obligations under the Transaction Documents. 

 

(c)          Authorization;
Enforcement. The execution and delivery of each of the Transaction Documents by the Company and the consummation by the Company
of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of the Company
and no further action is required by the Company in connection therewith. This Agreement has been, and the Warrants, upon issuance
and delivery as contemplated hereby, will have been, duly executed by the Company and each Transaction Document, when delivered
in accordance with the terms hereof, will constitute the valid and binding obligation of the Company enforceable against the Company
in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium, liquidation or similar laws relating to, or affecting generally the enforcement of, creditors’ rights and remedies
or by other equitable principles of general application.

 

(d)          No
Conflicts. The execution, delivery and performance of the Transaction Documents by the Company, the offering, sale and
issuance of the Units, the issuance of the Warrant Shares upon exercise of the Warrants in accordance with theirs terms, and the
consummation by the Company of the transactions contemplated by the Transaction Documents do not and will not (i) conflict with
or violate any provision of the Charter or the By-Laws, or (ii) conflict with, or constitute a default (or an event that with notice
or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or
cancellation (with or without notice, lapse of time or both) of, or result in the imposition of any lien upon any of the material
properties or assets of the Company pursuant to, any agreement, credit facility, debt or other instrument or other understanding
to which the Company is a party or by which any property or asset of the Company is bound or affected, or (iii) result in a violation
of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to
which the Company is subject (including federal and state securities laws and regulations), or by which any property or asset of
the Company is bound or affected; except in the case of each of clauses (ii) and (iii), such as could not, individually or in the
aggregate, have or reasonably be expected to result in a Material Adverse Effect.

 

    	5

    	 

    

 

(e)          Issuance
of Shares and Warrant Shares. The Shares, when issued, sold and delivered in accordance with the terms and for the consideration
set forth in this Agreement, will be validly issued, fully paid and nonassessable shares of Common Stock and free of restrictions
on transfer other than restrictions on transfer under applicable state and federal securities laws and liens or encumbrances created
by or imposed by the Investor. Assuming the accuracy of the representations of the Investor in Section 4 of this Agreement and
subject to the filings described in Section 3(g) below, the Shares will be issued in compliance with all applicable federal and
state securities laws. The Warrant Shares issuable upon exercise of the Warrants have been duly reserved for issuance, and upon
issuance in accordance with the terms of the Warrants, will be validly issued, fully paid and nonassessable shares of Common Stock
and free of restrictions on transfer other than restrictions on transfer under applicable federal and state securities laws and
liens or encumbrances created by or imposed by the Investor. Based in part upon the representations of the Investor in Section
4 of this Agreement, and subject to the filings described in Section 3(g) below, the Warrant Shares will, when issued in accordance
with the terms of the Warrants (including without limitation the payment of the exercise price therefor), be issued in compliance
with all applicable federal and state securities laws.

 

(f)          SEC
Reports; Financial Statements. The Company has filed all reports required to be filed by it under the Securities Act and the
Securities Exchange Act of 1934, as amended (the “Exchange Act”) for the twelve months preceding the date of
this Agreement (the foregoing materials, being collectively referred to herein as the “SEC Reports”). As of
their respective dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange
Act and the rules and regulations of the Securities and Exchange Commission (the “SEC”) promulgated thereunder,
and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they
were made, not misleading. Except as set forth in the Company’s Annual Report on Form 10-K for the year ended December 31,
2011 (the “10-K”) or in the Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2012
(the “10-Q”), the financial statements of the Company included in the SEC Reports 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. Such financial statements have been prepared in accordance with GAAP applied on a consistent basis during the periods
involved, except as may be otherwise specified in the 10-K or the 10-Q, and fairly present in all material respects the financial
position of the Company and its consolidated subsidiaries as of and for the dates thereof and the results of operations and cash
flows for the periods then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments.

 

(g)          Governmental
Consents and Filings. Assuming the accuracy of the representations made by the Investor in Section 4 of this Agreement, no
consent, approval, order or authorization of, or registration, qualification, designation, declaration or filing with, any federal,
state or local governmental authority is required on the part of the Company in connection with the consummation of the transactions
contemplated by this Agreement, except for filings pursuant to Regulation D of the Securities Act, and applicable state securities
laws, which have been made or will be made in a timely manner.

 

    	6

    	 

    

 

(h)          Brokerage
Fees. Except for the fees and commissions due to Dawson James pursuant to the Placement Agent Agreement dated March
23, 2012 between the Company and Dawson James (the “Placement Agreement”), no other brokerage or finder’s
fees or commissions are or will be payable by the Company or the Investor to any broker, financial advisor or consultant, finder,
placement agent, investment banker, bank or other person with respect to the transactions contemplated by any of the Transaction
Documents by reason of any agreements to which the Company is a party or otherwise binding upon the Company. The Investor shall
have no obligation with respect to any fees or with respect to any claims (other than such fees or commissions owed by the Investor
pursuant to written agreements executed by the Investor, which fees or commissions shall be the sole responsibility of the Investor)
made by or on behalf of other persons for fees that may be due in connection with the transactions contemplated by the Transaction
Documents.

 

(i)          No
Integrated Offering. None of the Company, its subsidiaries nor any of their affiliates, nor any person acting on their behalf
has, directly or indirectly, made any offers or sales of any security, or solicited any offers to buy any security, under circumstances
that would cause this offering of the Units to require approval of stockholders of the Company under any applicable stockholder
approval provisions, including, without limitation, under the rules and regulations of any exchange or automated quotation system
on which any of the securities of the Company are listed or designated for quotation. 

 

(j)          No
Undisclosed Events, Liabilities, Developments or Circumstances. No event, liability, development or circumstance has occurred
or exists, or is reasonably expected to exist or occur, with respect to the Company, any of its subsidiaries or any of their respective
businesses, properties, liabilities, operations (including results thereof) or condition (financial or otherwise) that (i) would
be required to be disclosed by the Company under applicable securities laws on a registration statement on Form S-1 filed with
the SEC relating to an issuance and sale by the Company of its Common Stock and which has not been publicly announced, (ii) could
be reasonably expected to have a material adverse effect on any Investor’s investment hereunder or (iii) could be reasonably
expected to have a Material Adverse Effect.

 

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

 

    	7

    	 

    

 

(l)          Sarbanes-Oxley
Act and Dodd-Frank Act. The Company is in compliance with all applicable requirements of the Sarbanes-Oxley Act of 2002 and
Dodd–Frank Wall Street Reform and Consumer Protection Act of 2010 that are effective as of the date hereof and all applicable
rules and regulations promulgated by the SEC thereunder that are effective as of the date hereof, except where failure to be in
compliance would not, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(m)          Disclosure.
All disclosure regarding the Company and its subsidiaries, their businesses and the transactions contemplated hereby set forth
in this Agreement or otherwise furnished in writing to the Investor by or on behalf of the Company is true and correct in all material
respects and does not contain any untrue statement of a material fact or omit to state any material fact necessary in order to
make the statements made herein or therein, in the light of the circumstances under which they were made, not misleading. No event
or circumstance has occurred or information exists with respect to the Company or its subsidiaries or their business, properties,
liabilities, operations (including results thereof) or conditions (financial or otherwise), which, under applicable law, rule or
regulation, requires public disclosure at or before the date hereof or announcement by the Company but which has not been so publicly
disclosed. 

 

4.          Representations
and Warranties of the Investor. The Investor hereby represents and warrants to the Company as follows:

 

(a)  Authorization;
Enforcement. The Investor has full power and authority to enter into, and to perform its obligations under, this Agreement.
This Agreement has been duly executed by the Investor and constitutes the valid and binding obligation of the Investor enforceable
against the Investor in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation or similar laws relating to, or affecting generally the enforcement of, creditors’
rights and remedies or by other equitable principles of general application.

 

(b)  Purchase for
the Investor’s Own Account. The Units to be acquired by the Investor hereunder and the Warrant Shares to be acquired
by the Investor upon exercise of the Warrants will be acquired for investment for the Investor’s own account, not as a nominee
or agent, and not with a view to the resale or distribution of any part thereof, and the Investor has no present intention of
selling, granting any participation in, or otherwise distributing the same. By executing this Agreement, the Investor further
represents that the Investor does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer
or grant participations to such person or to any third person, with respect to any of the Units, the Shares, the Warrants or the
Warrant Shares. The Investor has not been formed for the specific purpose of acquiring the Units.

 

    	8

    	 

    

 

(c)  Knowledge
and Experience. The Investor or persons making the investment decision on behalf of the Investor are knowledgeable and experienced
in businesses of the sort conducted by the Company, and such Investor acknowledges that it has had the opportunity to review the
SEC Reports and to make inquiry of officers and management employees of the Company concerning the business and financial condition
of the Company and have received answers to their inquiries that they consider fully responsive and satisfactory. The Investor
has the capacity to protect its own interests in connection with this transaction, is financially capable of bearing a total loss
of the Shares, the Warrants and the Warrant Shares and has the ability to bear the economic risk of this investment indefinitely.
The Investor acknowledges that neither Dawson James nor the Company, nor any of their affiliates, is acting as a fiduciary or financial
or investment adviser to the Investor or has given the Investor any investment advice, opinion or other information on whether
the purchase of the Units is prudent. 

 

(d)  Restricted Securities.
The Investor understands that neither the Units, the Shares and Warrants included therein, nor the
Warrant Shares have been or will be, registered under the Securities Act, by reason of a specific exemption from the registration
provisions of the Securities Act which depends upon, among other things, the bona fide nature of the investment intent and the
accuracy of the Investor’s representations as expressed herein. The Investor understands that the Units, the Shares, the
Warrants and the Warrant Shares are “restricted securities” under applicable state and
federal securities laws and that, pursuant to these laws, the Investor must hold the Units, the Shares, the Warrants and
the Warrant Shares indefinitely unless and until they are registered with the SEC and qualified
by state authorities, or an exemption from such registration and qualification requirements is available. The Investor further
acknowledges that if an exemption from registration or qualification is available, it may be conditioned on various requirements
including, but not limited to, the time and manner of sale, the holding period for the Units, the Shares, the Warrants or the
Warrant Shares, and on requirements relating to the Company which are outside of the Investor’s control, and which the Company
is under no obligation, and may not be able, to satisfy.

 

(e)  Accredited Investor.
The Investor is an Accredited Investor. 

 

(f)  Foreign
Investors. If the Investor is not a United States person (as defined by Section 7701(a)(30)
of the Code), such Investor hereby represents that it has satisfied itself as to the full observance of the laws of its jurisdiction
in connection with any invitation to subscribe for the Units or any use of this Agreement, including (i) the legal requirements
within its jurisdiction for the purchase of the Units, (ii) any foreign exchange restrictions applicable to such purchase, (iii)
any governmental or other consents that may need to be obtained, and (iv) the income tax and other tax consequences, if any, that
may be relevant to the purchase, holding, redemption, sale, or transfer of the Units, the Shares, the Warrants or the Warrant Shares.
Such Investor’s subscription and payment for and continued beneficial ownership of the Units, the Shares, the Warrants or
the Warrant Shares, will not violate any applicable securities or other laws of the Investor’s jurisdiction.

 

(g)  Residence.
If the Investor is an individual, then the Investor resides in the place identified in the address of the Investor set forth on
the Investor’s Signature Page hereto; if the Investor is a partnership, company, limited liability company or other entity,
then the office of the Investor in which its investment decision was made is located at the address of the Investor set forth on
the Investor’s Signature Page hereto.

 

    	9

    	 

    

 

(h)  Brokerage
Fees. Except for the fees and commissions due from the Company to Dawson James pursuant to the Placement Agreement,
no brokerage or finder’s fees or commissions are or will be payable by the Investor to any broker, financial advisor or consultant,
finder, placement agent, investment banker, bank or other person with respect to the transactions contemplated by any of the Transaction
Documents by reason of any agreements to which the Investor is a party or otherwise binding upon the Investor. 

 

(i)  Certain
Trading Activities. The Investor has not directly or indirectly, nor has any person acting on behalf of or pursuant to any
understanding with the Investor, engaged in any transactions in the securities of the Company (including, without limitations,
any “short sales” as defined in Rule 200 promulgated under Regulation SHO under the Exchange Act or any direct and
indirect stock pledges, forward sale contracts, options, puts, calls, short sales, swaps and similar arrangements (including on
a total return basis), or any sales and other transactions through non-US broker dealers or foreign regulated brokers involving
the Company’s securities) since the earlier to occur of (i) the time that the Investor was first contacted by the Company,
Dawson James or any other person regarding an investment in the Company and (ii) the 30th day prior to the date of this
Agreement. 

 

5.          Condition
to the Investor’s Obligations at Closing. The obligation of the Investor to purchase the Purchased Units at the Closing
is subject to the fulfillment, on or before such Closing, of each of the following conditions, unless otherwise waived:

 

(a)  Representations
and Warranties. The representations and warranties of the Company contained in Section 3 shall be true and correct in all
material respects on and as of the Closing with the same effect as though such representations and warranties had been made on
and as of the date of the Closing.

 

(b)  Performance.
The Company shall have performed and complied with all covenants, agreements, obligations and conditions contained in this Agreement
that are required to be performed or complied with by it on or before the Closing.

 

(c)  Subscriptions
by Other Investors. The Company shall have entered into Securities Purchase Agreement in substantially the same form as this
with one or more Additional Investors for the issuance and sale of an aggregate of at least twenty-four (24) Units (including
the Purchased Units) for aggregate proceeds of $1,500,000.

 

(d)  Stand-Still
Agreements. If, but only if, the aggregate number of Units to be issued at the Closing to the Investor and all Additional
Investors, together with all Units previously issued, exceeds eighty-two (82) Units (such Units to be issued being hereinafter
referred to as “Excess Units”), the holders of shares of the Company’s Series B Convertible Preferred
Stock, par value $0.10 per share (the “Series B Preferred Stock”) and of Convertible Securities convertible
or exercisable for an aggregate number of shares of Common Stock equal to at least (i) one million three hundred seventy-five
thousand (1,375,000) times (ii) the number of Excess Units shall have agreed not to convert such shares of Series B Preferred
Stock or to exercise such Convertible Securities until such time as the Charter shall have been amended to increase the number
of authorized shares of Common Stock to at least seven hundred million (700,000,000).

 

    	10

    	 

    

 

(e)  Compliance
Certificate. The Chairman and Chief Executive Officer of the Company shall deliver to the Investor a Certificate certifying
that the conditions specified in Sections 5(a), 5(b) and 5(c) have been fulfilled. 

 

(f)  Secretary’s
Certificate. The Secretary of the Company shall deliver to the Investor a Certificate certifying (i) the Charter, (ii) the
Bylaws and (iii) resolutions of the Board of Directors of the Company approving the Transaction Documents, the issuance of the
Units and the other transactions contemplated under the Transaction Documents.

 

(g)  Opinion of Counsel.
The Investor shall have received from Nixon Peabody LLP, counsel for the Company, an opinion, dated as of the Closing, in form
and substance reasonably satisfactory to the Investor.

 

6.          Condition
to the Company’s Obligations at Closing. The obligation of the Company to issue the Purchased Units at the Closing is
subject to the fulfillment, on or before such Closing, of each of the following conditions, unless otherwise waived:

 

(a)  Representations
and Warranties. The representations and warranties of the Investor contained in Section 4 shall be true and correct in all
material respects on and as of the Closing with the same effect as though such representations and warranties had been made on
and as of the date of the Closing.

 

(b)  Performance.
The Investor shall have performed and complied with all covenants, agreements, obligations and conditions contained in this Agreement
that are required to be performed or complied with by it on or before the Closing (including, without limitation, the tendering
of the Purchase Price for the Purchased Units).

 

(c)  Stand-Still
Agreements. If, but only if, any Units to be issued at the Closing to the Investor and all Additional Investors, would constitute
Excess Units, the holders of shares of Series B Preferred Stock and of Convertible Securities convertible or exercisable for an
aggregate number of shares of Common Stock equal to at least (i) one million three hundred seventy-five thousand (1,375,000) times
(ii) the number of Excess Units shall have agreed not to convert such shares of Series B Preferred Stock or to exercise such
Convertible Securities until such time as the Charter shall have been amended to increase the number of authorized shares of Common
Stock to at least seven hundred million (700,000,000).

 

(d)  Subscriptions
by Other Investors. The Company shall have entered into Securities Purchase Agreement in substantially the same form as this
with one or more Additional Investors for the issuance and sale of an aggregate of at least twenty-four (24) Units (including the
Purchased Units) for aggregate proceeds of $1,500,000.

 

    	11

    	 

    

 

7.          Registration
Rights.

 

(a)  Registration
Statement. The Company shall prepare and file with the SEC not later than sixty (60) days after the final Closing of the Offering
(the “Filing Deadline”) a Registration Statement relating to the offer and sale from
time to time on a continuous basis by the Investor and the Additional Investors (collectively, the “Investors”)
of the Shares and the Warrant Shares (collectively, the “Registrable Securities”) (the “Registration
Statement”) and shall use commercially reasonable efforts to cause the SEC to declare such
Registration Statement effective under the Securities Act as promptly as practicable, but in no event later than ninety (90) days
after the Filing Deadline (the “Registration Deadline”). In the event the Registration Statement is not
filed on or before the Filing Deadline or is not declared effective on or before the Registration Deadline, then the Company shall
pay to the Investor a penalty in the amount equal to two percent (2%) of the Purchase Price, which penalty shall be payable, in
the discretion of the Investor (i) in cash or (ii) by the issuance to the Investor of shares of Common Stock valued at the volume
weighted average trading price per share of Common Stock for the fifteen (15) trading days immediately preceding the Filing Deadline
or the Registration Deadline (as the case may be) on such exchange or in such market as the Common Stock is then traded, as reported
by Bloomberg Financial Markets, or any successor performing similar functions; provided, however, that the maximum penalty payable
by the Company if the Registration Statement is not filed on or before the Filing Deadline or is not declared effective on or before
the Registration Deadline shall be two percent (2%) of the Purchase Price, and if such penalty is paid due to the Company’s
failure to file the Registration Statement on or prior to the Filing Deadline no additional penalty shall be assessed even if the
Registration Statement is not declared effective on or before the Registration Deadline. The Company shall not be obligated to
register more Registrable Securities than permitted under the Securities Act or any rule or regulation of the SEC promulgated thereunder
or any interpretation thereof by the Staff of the SEC. In the event the Company is unable to register all of the Registrable Securities,
the number of Registrable Securities to be registered for the account of each of the Investors shall be reduced, pro rata,
based on the total number of Registrable Securities proposed to be registered and, as soon as practical thereafter, the Company
shall file another Registration Statement covering the remaining Registrable Securities. The Company shall not include any securities
other than the Registrable Securities in the Registration Statement.

 

(b)  Registration
Process. The Company shall promptly (and, in any event, no more than 24 hours after it receives comments from the Commission),
notify Dawson James and the Investors whose Registrable Securities are covered by the Registration
Statement filed pursuant to this Article 4 when and if it receives any comments from the Commission on such Registration Statement
or any amendment thereof and promptly forward a copy of such comments, if they are in writing,
to Dawson James and such Investors upon request. At such time as the Commission indicates, either orally or in writing, that it
has no further comments with respect to such Registration Statement or any amendment thereof
or that it is willing to entertain appropriate requests for acceleration of effectiveness of such Registration Statement
or any amendment thereof, the Company shall promptly, and in no event later than two (2) business days after receipt of
such indication from the Commission, request that the effectiveness of such Registration Statement or
any amendment thereof be accelerated within 48 hours of the Commission’s receipt of such request. Within twenty-four
(24) hours of such declaration by the Commission, the Company shall notify the Investors whose Registrable Securities are covered
by such Registration Statement that such Registration Statement or any amendment thereof has
been declared effective by the Commission.

 

    	12

    	 

    

 

(c)  Obligations
of the Company. In connection with the registration of the Registrable Securities, the Company shall:

 

(i)
Prepare and file the Registration Statement in accordance with the time period set forth in Section
7(a) and promptly prepare and file with the Commission such amendments (including post-effective amendments) to the Registration
Statement and supplements to the prospectus included therein (a “Prospectus”) as may be necessary
to keep the Registration Statement continuously effective and in compliance with the provisions of the Securities Act applicable
thereto so as to permit the Prospectus forming part thereof to be current and useable by Investors for resales of the Registrable
Securities until the earlier of (x) the date when all Registrable Securities covered by such
Registration Statement have been sold or (y) the date on which all Registrable Securities may be sold without any restriction (including
volume limitations) pursuant to Rule 144 promulgated under the Securities Act (the “Registration Period”)
and take all lawful action such that the Registration Statement and any amendment thereto does not, when it becomes effective,
contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make
the statements therein, not misleading and that the Prospectus forming part of the Registration Statement, and any amendment or
supplement thereto, does not at any time during the Registration Period include an untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading;

 

(ii) During
the Registration Period, comply with the provisions of the Securities Act with respect to the
Registrable Securities covered by the Registration Statement until such time as all of such Registrable Securities have been disposed
of in accordance with the intended methods of disposition by the Investors as set forth in the Prospectus forming part of the Registration
Statement;

 

(iii) Prior to
the filing with the Commission of the Registration Statement (including any amendments thereto)
and the distribution or delivery of any Prospectus (including any supplements thereto), provide draft copies thereof to the Investors
and reflect in such documents all such comments as the Investors (and their counsel) reasonably may propose and furnish to each
Investor whose Registrable Securities are included in the Registration Statement and its legal counsel identified to the Company,
promptly after the same is prepared and publicly distributed, filed with the Commission, or received by the Company, one copy of
the Registration Statement, each Prospectus, and each amendment or supplement thereto, and such number of copies of the Prospectus
and all amendments and supplements thereto and such other documents, as such Investor may reasonably request in order to facilitate
the disposition of the Registrable Securities owned by such Investor;

 

    	13

    	 

    

 

(iv) Register
or qualify the Registrable Securities covered by the Registration Statement under such securities or “blue sky” laws
of such jurisdictions as the Investors reasonably request, prepare and file in such jurisdictions such amendments (including post-effective
amendments) and supplements to such registrations and qualifications as may be necessary to maintain the effectiveness thereof
at all times during the Registration Period, take all such other lawful actions as may be necessary to maintain such registrations
and qualifications in effect at all times during the Registration Period, and take all such other lawful actions reasonably necessary
or advisable to qualify the Registrable Securities for sale in such jurisdictions; provided, however, that the Company shall
not be required in connection therewith or as a condition thereto to (A) qualify to do business in any jurisdiction where it would
not otherwise be required to qualify, (B) subject itself to general taxation in any such jurisdiction or (C) file a general consent
to service of process in any such jurisdiction;

 

(v) As promptly
as practicable after becoming aware of such event, notify each Investor of the occurrence of any event, as a result of which the
Prospectus included in the Registration Statement, as then in effect, includes an untrue statement of a material fact or omits
to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading, and promptly prepare an amendment to the Registration Statement and supplement to the
Prospectus to correct such untrue statement or omission, and deliver a number of copies of such supplement and amendment to each
Investor as such Investor may reasonably request;

 

(vi) As promptly
as practicable after becoming aware of such event, notify each Investor who holds Registrable Securities being sold (or, in the
event of an underwritten offering, the managing underwriters) of the issuance by the Commission of any stop order or other suspension
of the effectiveness of the Registration Statement and take all lawful action to effect the withdrawal, rescission
or removal of such stop order or other suspension;

 

(vii) Take
all such other lawful actions reasonably necessary to expedite and facilitate the disposition by the Investors of their Registrable
Securities in accordance with the intended methods therefor provided in the Prospectus which are customary under the circumstances;

 

(viii) Make
generally available to its security holders as soon as practicable, but in any event not later than eighteen
(18) months after (i) the effective date of the Registration Statement, and (ii) the effective
date of each post-effective amendment to the Registration Statement, as the case may be, an earnings statement of the Company and
its subsidiaries complying with Section 11(a) of the Securities Act and the rules and regulations of the Commission thereunder;

 

    	14

    	 

    

 

(ix) Make reasonably
available for inspection by the Investors, any underwriter participating in any disposition pursuant to the Registration Statement,
and any attorney, accountant or other agent retained by such Investors or any such underwriter all relevant financial and other
records, pertinent corporate documents and properties of the Company and its subsidiaries, and (ii) cause the Company’s officers,
directors and employees to supply all information reasonably requested by such Investors or any such underwriter, attorney, accountant
or agent in connection with the Registration Statement, in each case, as is customary for similar due diligence examinations; provided,
however, that all records, information and documents that are designated in writing by the Company, in good faith, as confidential,
proprietary or containing any nonpublic information shall be kept confidential by such Investors and any such underwriter, attorney,
accountant or agent (pursuant to an appropriate confidentiality agreement in the case of any such holder or agent), unless such
disclosure is made pursuant to judicial process in a court proceeding (after first giving the Company an opportunity promptly to
seek a protective order or otherwise limit the scope of the information sought to be disclosed) or is required by law, or such
records, information or documents become available to the public generally or through a third party not in violation of an accompanying
obligation of confidentiality; and provided, further, that, if the foregoing inspection and information gathering would
otherwise disrupt the Company’s conduct of its business, such inspection and information gathering shall, to the maximum
extent possible, be coordinated on behalf of the Investors and the other parties entitled thereto by one firm of counsel designated
by and on behalf of the majority in interest of Investors and other parties;

 

(x) In connection
with any offering, make such representations and warranties to the Investors participating in such offering and to the underwriters
if an underwritten offering, in form, substance and scope as are customarily made by the Company to underwriters in secondary
underwritten offerings; and

 

(xi) Cooperate
with the Investors to facilitate the timely preparation and delivery of certificates representing Registrable Securities
to be sold pursuant to the Registration Statement, which certificates shall be free of all restrictive legends, and to enable such
Registrable Securities to be in such denominations and registered in such names as any Investor
may request.

 

(d)  Obligations
of the Investor. In connection with the registration of the Registrable Securities, the Investor shall have the following obligations
and hereby makes the following acknowledgements:

 

(i) It shall be
a condition precedent to the obligations of the Company to include the Registrable Securities
of the Investor in the Registration Statement that the Investor shall furnish to the Company
such information regarding itself, the Registrable Securities held by it and the intended method of disposition of the Registrable
Securities held by it as shall be reasonably required to effect the registration of such Registrable Securities and shall execute
such documents in connection with such registration as the Company may reasonably request. At least twenty (20) business days prior
to the first anticipated filing date of a Registration Statement, the Company shall notify the Investor of the information the
Company requires from such Investor (the “Requested Information”) if the Investor elects to have
any of its Registrable Securities included in the Registration Statement. If at least two (2) business days prior to the anticipated
filing date the Company has not received the Requested Information from an Investor (a “Non-Responsive Investor”),
then the Company may file the Registration Statement without including any Registrable Securities of such Non-Responsive Investor
and the Company shall have no further obligations under this Section 7 to the Non-Responsive Investor
after such Registration Statement has been declared effective. If such Non-Responsive Investor notifies the Company and provides
the Company the information required hereby prior to the time the Registration Statement is declared effective, the Company will
file an amendment to the Registration Statement that includes the Registrable Securities of such Non-Responsive Investor;

 

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(ii) The Investor
agrees to cooperate with the Company in connection with the preparation and filing of a Registration Statement hereunder, unless
such Investor has notified the Company in writing of its election to exclude all of its Registrable Securities from such Registration
Statement;

 

(iii) The Investor
agrees that, upon receipt of any notice from the Company of the occurrence of any event of the kind described in Section 7(c)(v)
or 7(c)(vi) , it shall immediately discontinue its disposition of Registrable Securities pursuant to the Registration Statement
covering such Registrable Securities until receipt of the copies of the supplemented or amended Prospectus contemplated by Section
7(c)(v) and, if so directed by the Company, shall deliver to the Company (at the expense of the Company) or destroy (and deliver
to the Company a certificate of destruction) all copies in the Investor’s possession, of the Prospectus covering such Registrable
Securities current at the time of receipt of such notice; and

 

(iv)
The Investor acknowledges that it may be deemed to be a statutory underwriter within the meaning of the Securities Act with
respect to the Registrable Securities being registered for resale by it, and each Investor which includes Registrable Securities
for offer and sale within a Registration Statement hereby consents to the inclusion in such Registration Statement of a disclosure
to such effect.

 

(e)  Expenses
of Registration. All expenses, other than underwriting discounts and commissions, incurred in connection with registrations,
filings or qualifications pursuant to this Section 7, including, without limitation, all registration, listing, and qualifications
fees, printing and engraving fees, accounting fees, and the fees and disbursements of counsel for the Company, and (with respect
to the preparation and filing of the Registration Statement) the reasonable fees of one firm of legal counsel for the Investors
(selected by Investors holding a majority of the Registrable Securities being included in the
Registration Statement) shall be borne by the Company.

 

(f)  Indemnification
and Contribution. 

 

(i) Indemnification
by the Company The Company shall indemnify and hold harmless each
Investor and each underwriter, if any, which facilitates the disposition of Registrable Securities, and each of their respective
officers and directors and each Person who controls such Investor or underwriter within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act from and against any losses, claims, damages or liabilities, joint or several, to which it
may become subject under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in
any Registration Statement or an omission or alleged omission to state therein a material fact required to be stated therein or
necessary to make the statements therein, not misleading, or arise out of or are based upon an untrue statement or alleged untrue
statement of a material fact contained in any Prospectus or an omission or alleged omission to state therein a material fact required
to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made,
not misleading; and the Company hereby agrees to reimburse it for all reasonable legal and other expenses incurred by them in connection
with investigating or defending any such action or claim as and when such expenses are incurred; provided, however, that
the Company shall not be liable to any Investor, underwriter or any other person otherwise entitled to indemnification pursuant
to this Section 7(f)(i) in any such case to the extent that any such loss, claim, damage or liability arises out of or is based
upon (i) an untrue statement or alleged untrue statement made in, or an omission or alleged omission from, such Registration Statement
or Prospectus in reliance upon and in conformity with written information furnished to the Company by it expressly for use therein
or (ii) in the case of the occurrence of an event of the type specified in Section 7(c)(v)), its use of an outdated or defective
Prospectus after the Company has provided to it an updated Prospectus correcting the untrue statement or alleged untrue statement
or omission or alleged omission giving rise to such loss, claim, damage or liability.

 

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(ii) Indemnification
by the Investors and Underwriters. Each Investor shall, severally and not jointly, as a consequence
of the inclusion of any of its Registrable Securities in a Registration Statement, and each underwriter, if any, which facilitates
the disposition of Registrable Securities shall agree, severally and not jointly, as a consequence
of facilitating such disposition of Registrable Securities to, (i) indemnify and hold harmless the Company, its directors (including
any person who, with his or her consent, is named in the Registration Statement as a director nominee of the Company), its officers
who sign any Registration Statement and each person, if any, who controls the Company within the meaning of either Section 15 of
the Securities Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities to which the Company or
such other persons may become subject, under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities
(or actions in respect thereof) arise out of or are based upon an untrue statement or alleged untrue statement of a material fact
contained in such Registration Statement or Prospectus or arise out of or are based upon the omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the statements therein (in light of the circumstances
under which they were made, in the case of the Prospectus), not misleading, in each case to the extent, but only to the extent,
that such untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and in conformity
with written information furnished to the Company by such holder or underwriter expressly for use therein,
and (ii) reimburse the Company for any legal or other expenses incurred by the Company in connection with investigating or defending
any such action or claim as such expenses are incurred; provided, however, that no Investor or underwriter shall
be liable under this Section 7(f)(ii) for any amount in excess of the net proceeds paid to such Investor or underwriter in respect
of shares sold by it.

 

(iii) Notice
of Claims, etc. Promptly after receipt by a person seeking indemnification pursuant to this Section 7(f) (an “Indemnified
Person”) of written notice of any investigation, claim, proceeding or other action in respect of which indemnification
is being sought (each, a “Claim”), the Indemnified Person promptly shall notify the person against
whom indemnification pursuant to this Section 7(f) is being sought (the “Indemnifying Party”)
of the commencement thereof; but the omission to so notify the Indemnifying Party shall not relieve it from any liability that
it otherwise may have to the Indemnified Person, except to the extent that the Indemnifying Party is materially prejudiced and
forfeits substantive rights and defenses by reason of such failure. In connection with any Claim as to which both the Indemnifying
Party and the Indemnified Person are parties, the Indemnifying Party shall be entitled to assume the defense thereof. Notwithstanding
the assumption of the defense of any Claim by the Indemnifying Party, the Indemnified Person shall have the right to employ separate
legal counsel and to participate in the defense of such Claim, and the Indemnifying Party shall bear the reasonable fees, out-of-pocket
costs and expenses of such separate legal counsel to the Indemnified Person if (and only if): (i) the Indemnifying Party shall
have agreed to pay such fees, costs and expenses, (ii) the Indemnified Person shall reasonably have concluded that representation
of the Indemnified Person by the Indemnifying Party by the same legal counsel would not be appropriate due to actual or, as reasonably
determined by legal counsel to the Indemnified Person, potentially differing interests between such parties in the conduct of the
defense of such Claim, or if there may be legal defenses available to the Indemnified Person that are in addition to or disparate
from those available to the Indemnifying Party, or (iii) the Indemnifying Party shall have failed to employ legal counsel reasonably
satisfactory to the Indemnified Person within a reasonable period of time after notice of the commencement of such Claim. If the
Indemnified Person employs separate legal counsel in circumstances other than as described in the preceding sentence, the fees,
costs and expenses of such legal counsel shall be borne exclusively by the Indemnified Person. Except as provided above, the Indemnifying
Party shall not, in connection with any Claim in the same jurisdiction, be liable for the fees and expenses of more than one firm
of counsel for the Indemnified Person (together with appropriate local counsel). The Indemnified Person shall not, without the
prior written consent of the Indemnifying Party (which consent shall not unreasonably be withheld), settle or compromise any Claim
or consent to the entry of any judgment that does not include an unconditional release of the Indemnifying Party from all liabilities
with respect to such Claim or judgment or contain any admission of wrongdoing.

 

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(iv) Contribution.
If the indemnification provided for in this Section 7(f) is unavailable to or insufficient to hold harmless an Indemnified Person
in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein, then each Indemnifying
Party shall contribute to the amount paid or payable by such Indemnified Person as a result of such losses, claims, damages or
liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative fault of the Indemnifying
Party and the Indemnified Person in connection with the statements or omissions or alleged statements
or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any
other relevant equitable considerations. The relative fault of such Indemnifying Party and Indemnified Person shall be determined
by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or omission or alleged omission
to state a material fact relates to information supplied by such Indemnifying Party or by such Indemnified Person, and the parties’
relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The parties
hereto agree that it would not be just and equitable if contribution pursuant to this Section 7(f)(iv) were determined by pro rata
allocation (even if the Investors or any underwriters were treated as one entity for such purpose) or by any other method of allocation
which does not take account of the equitable considerations referred to in this Section 7(f)(iv). The amount paid or payable by
an Indemnified Person as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above
shall be deemed to include any legal or other fees or expenses reasonably incurred by such Indemnified Person in connection with
investigating or defending any such action or claim. No person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.
The obligations of the Investors and any underwriters in this Section 7(f)(iv) to contribute shall be several in proportion to
the percentage of Registrable Securities registered or underwritten, as the case may be, by them and not joint.

 

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(v) Limitation
on Investors’ and Underwriters’ Obligations. Notwithstanding any other provision of this Section 7(f), in no event
shall any (i) Investor have any liability under this Section 7(f) for any amounts in excess of
the dollar amount of the proceeds actually received by such Investor from the sale of such Investor’s
Registrable Securities (after deducting any fees, discounts and commissions applicable thereto) pursuant to any Registration Statement
under which such Registrable Securities are registered under the Securities Act and (ii) underwriter be required to undertake liability
to any Person hereunder for any amounts in excess of the aggregate discount, commission or other compensation payable to such underwriter
with respect to the Registrable Securities underwritten by it and distributed pursuant to the Registration Statement.

 

(vi)
Other Liabilities. The obligations of the Company under this Section 7(f) shall be in addition to any liability which the
Company may otherwise have to any Indemnified Person and the obligations of any Indemnified Person under this Section 7(f) shall
be in addition to any liability which such Indemnified Person may otherwise have to the Company. The remedies provided in this
Section 7(f) are not exclusive and shall not limit any rights or remedies which may otherwise be available to an Indemnified Person
at law or in equity. 

 

8.          Entire
Agreement. The Transaction Documents contain the entire understanding of the parties with respect
to the subject matter hereof and supersede all prior agreements, understandings, discussions and representations, oral or written,
with respect to such matters. No provision of any Transaction Document may be waived or amended except in a written instrument
signed by the Company and the Investor. No waiver of any default with respect to any provision, condition or requirement of any
of the Transaction Documents shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a
waiver of any other provision, condition or requirement of such Transaction Document or of any other Transaction Document, nor
shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right. 

 

9.          Successors
and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the undersigned parties and their respective
heirs, personal representatives, successors and assigns.

 

10.         Governing
Law and Jurisdiction. This Agreement and the rights of the parties hereunder shall be construed and enforced in accordance
with the laws of the Commonwealth of Massachusetts applicable to agreements executed and to be performed wholly within such state
and without regard to principles of conflicts of law. Each party irrevocably (a) consents to the jurisdiction of the federal and
state courts situated in or having jurisdiction over Boston, Massachusetts in any action that may be brought for the enforcement
of this Agreement, and (b) submits to and accepts, with respect to its properties and assets, generally and unconditionally, the
in personam jurisdiction of the aforesaid courts, waiving any defense that such court is not a convenient forum.

 

11.         Execution.
This Agreement may be executed in counterparts, all of which when taken together shall be considered one and the same agreement
and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood
that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile or electronic (including
PDF) transmission, such delivery shall create a valid and binding obligation of the party executing (or on whose behalf such signature
is executed) with the same force and effect as if such facsimile or electronic signature page were an original thereof, notwithstanding
any subsequent failure or refusal to deliver an original signed in ink.

 

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12.         Severability.
If any provision of this Agreement is held to be invalid or unenforceable in any respect, the parties will attempt to agree upon
a valid and enforceable provision that is a reasonable substitute therefor, and upon so agreeing, shall incorporate such substitute
provision in this Agreement. If any provision of this Agreement is held to be invalid or unenforceable in any respect, the validity
and enforceability of the remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby.

 

In
witness whereof, the Company and the Investor have executed and delivered this Agreement as of the date and year first above written.

 

	 	ThermoEnergy Company	 
	 	 	 
	 	By:	 	 
	 	 	Cary G. Bullock, President and CEO	 

 

    	20

    	 

    

 

Securities
Purchase Agreement

 

Investor’s
Signature Page

 

The undersigned Investor hereby becomes
a party to the Securities Purchase Agreement to which this Investor’s Signature Page is attached, agreeing to be bound by
the terms and provisions of such Securities Purchase Agreement, including without limitation the purchase of the number of Units
set forth below.

 

	 	Investor:	 
	 	 	 
	 	Investor’s Name	 
	 	 	 
	 	By:	 	 
	 	 	Authorized Signature	 

 

	Investor’s Address:	 
	 	 
	 	 
	 	 
	Date:	 	 

 

	Number of Units Subscribed For:	 	 
	 	 
	Purchase Price ($62,500 per Unit):	 	 

 

    	21

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