Document:

UNITED STATES

INVESTMENT AGREEMENT

INVESTMENT AGREEMENT (this “AGREEMENT”), dated as of July 15, 2015 by
and between NATCORE, INC., a British Columbia corporation (the “Company”)
located in the British Columbia, Canada, and Dutchess Opportunity Fund, II, LP,
a Delaware Limited Partnership (the “Investor”). 

WHEREAS, the parties desire that, upon the terms and subject to the
conditions contained herein, the Investor shall invest up to ten million
dollars ($10,000,000) to purchase the Company’s Common Stock with no par value
per share (the “Common Stock”); 

WHEREAS, such investments will be made in reliance upon the provisions
of Section 4(a)(2) and/or 4(a)(5) under the Securities Act of 1933, as amended
(the “1933 Act”), Rule 506 of Regulation D, and the rules and regulations
promulgated thereunder, and/or upon such other exemption from the registration
requirements of the 1933 Act as may be available with respect to any or all of
the investments in Common Stock to be made hereunder; 

WHEREAS, such investments will also be made in reliance upon an
exemption from the prospectus requirements of applicable securities laws in
Canada; 

WHEREAS, contemporaneously with the execution and delivery of this
Agreement, the parties hereto are executing and delivering a Registration Rights
Agreement substantially in the form attached hereto (the “Registration Rights
Agreement”) pursuant to which the Company has agreed to provide certain
registration rights under the 1933 Act, and the rules and regulations
promulgated thereunder, and applicable state securities laws; and 

NOW THEREFORE, in consideration of the foregoing recitals, which shall
be considered an integral part of this Agreement, the covenants and agreements
set forth hereafter, and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the Company and the Investor
hereby agree as follows: 

SECTION 1. DEFINITIONS. 

          As used in
this Agreement, the following terms shall have the following meanings specified
or indicated below, and such meanings shall be equally applicable to the
singular and plural forms of such defined terms. 

          “1933 Act”
shall have the meaning set forth in the recitals of this Agreement. 

          “1934 Act”
shall mean the Securities Exchange Act of 1934, as it may be amended. 

          “AAA” shall
have the meaning specified in Section 11. 

          “Affiliate”
shall have the meaning specified in Section 5(G). 

          “Agreement”
shall mean this Investment Agreement. 

          “Articles
of Incorporation” shall have the meaning specified in Section 4(C). 

          “By-laws”
shall have the meaning specified in Section 4(C). 

          “Clear”
shall mean the Shares are available for the Investor to trade on the Principal
Market. 

          “Clearing
Date” shall mean the date on which the Shares Clear. 

          “Closing”
shall have the meaning specified in Section 2(E). 

          “Closing
Date” shall have the meaning specified in Section 2(E). 

          “Common
Stock” shall have the meaning set forth in the recitals of this Agreement.
“Company” shall have the meaning set forth in the preamble of this Agreement.
“Control” or “Controls” shall have the meaning specified in Section 5(G). “DTC”
shall have the meaning specified in Section 2(E). “DWAC” shall have the meaning
specified in Section 2(E). 

          “Effective
Date” shall mean the date the SEC declares effective under the 1933 Act the
Registration Statement covering the Securities. 

          “Equity
Line Transaction Documents” shall mean this Agreement and the Registration
Rights Agreement. 

          “FAST”
shall have the meaning specified in Section 2(E). “Fee Shares” shall have the
meaning specified in Section 11. “Indemnities” shall have the meaning specified
in Section 10. 

          “Indemnified
Liabilities” shall have the meaning specified in Section 10. 

          “Indemnitor”
shall have the meaning specified in Section 10. 

          “Investor”
shall have the meaning indicated in the preamble of this Agreement. 

          “Material
Adverse Effect” shall have the meaning specified in Section 4(A). 

          “Maximum
Common Stock Issuance” shall have the meaning specified in Section 2(F). 

          “Suspension
Price” with respect to any Put Notice Date shall be the price defined by the Company
in the applicable Put Notice. 

          “Open
Market Adjustment Amount” shall have the meaning specified in Section 2(G). 

          “Open
Market Share Purchase” shall have the meaning specified in Section 2(G). 

          “Open
Period” shall mean the period beginning on and including the Trading Day
immediately following the Effective Date and ending on the earlier to occur of
(i) the date which is thirty-six (36) months from the Effective Date; or (ii)
termination of the Agreement in accordance with Section 9, below. 

          “Pricing
Period” shall mean the five (5) consecutive Trading Days beginning on the
Clearing Date and ending on and including the date that is four (4) Trading
Days after such Clearing Date. 

          “Principal
Market” shall mean the Canadian Securities Exchange, Toronto Stock Exchange,
TSX Venture Exchange, Nasdaq Capital Market, the NYSE Amex, the New York Stock
Exchange, the Nasdaq Global Market, the Nasdaq Global Select Market or the
OTCQB, whichever is the principal market on which the Common Stock is listed. 

          “Prospectus”
shall mean the prospectus, preliminary prospectus and supplemental prospectus
used in connection with the Registration Statement. 

          “Purchase
Amount” shall mean the total amount being paid by the Investor on a particular
Closing Date to purchase the Securities. 

          “Purchase
Price” shall mean ninety-five percent (95%) of the lowest daily VWAP (as
defined herein) of the Common Stock during the Pricing Period. 

          “Put” shall
have the meaning set forth in Section 2(B) hereof. 

          “Put
Amount” shall have the meaning set forth in Section 2(B) hereof. 

          “Put
Notice” shall mean a written notice in the form attached hereto as Exhibit C,
sent to the Investor by the Company stating the Put Amount in U.S. dollars the
Company intends to sell to the Investor pursuant to the terms of the Agreement
and stating the current number of Shares issued and outstanding on such date. 

          “Put Notice
Date” shall mean the Trading Day, as set forth below, immediately following the
day on which the Investor receives a Put Notice, however a Put Notice shall be
deemed delivered on (a) the Trading Day it is received by facsimile or email by
the Investor if such notice is received prior to noon Eastern Time, or (b) the
immediately succeeding Trading Day if it is received by facsimile or otherwise
after noon Eastern Time on a Trading Day. No Put Notice may be deemed delivered
on a day that is not a Trading Day or if the Shares do not Clear. 

          “Put
Restriction” shall mean the days during the Pricing Period. During this time,
the Company shall not be entitled to deliver another Put Notice. 

          “Put Shares
Due” shall have the meaning specified in Section 2(G). 

          “Registration
Rights Agreement” shall have the meaning set forth in the recitals of this
Agreement. 

          “Registration
Statement” means the registration statement of the Company filed under the 1933
Act covering the resale by the Investor of the Common Stock issuable hereunder.

          “Related
Party” shall have the meaning specified in Section 5(G). 

          “Resolutions”
shall have the meaning specified in Section 7(E). 

          “SEC” shall
mean the U.S. Securities & Exchange Commission. 

3

          “Securities”
shall mean the shares of Common Stock issued pursuant to the terms of the
Agreement. 

          “SEDAR”
shall mean the System for Electronic Document Analysis and Retrieval, a filing
system developed for the Canadian Securities Administrators (“CSA”) to
facilitate the electronic filing of securities information as required by the
CSA; allow for public dissemination of Canadian securities information
collected in the securities filing process; and provide electronic
communication between electronic filers, agents and the CSA. 

          “SEDAR
Documents” shall mean, as of a particular date, all reports and other documents
filed by the Company pursuant to applicable Canadian securities laws since the
end of the Company’s then most recently completed and reported fiscal year as
of the time in question (provided that if the date in question is within ninety
days of the beginning of the Company’s fiscal year, the term shall include all
documents filed since the beginning of the preceding fiscal year). 

          “Shares”
shall mean the shares of the Company’s Common Stock. 

          “Subsequent
Purchasers” shall have the meaning specified in Section 2(G). 

          “Subsidiaries”
shall have the meaning specified in Section 4(A). 

          “Trading
Day” shall mean any day on which the Principal Market for the Common Stock is
open for trading, from the hours of 9:30 am until 4:00 pm Eastern Time. 

          “VWAP”
shall mean the volume weighted average price during a Trading Day. 

SECTION 2. PURCHASE AND SALE OF COMMON STOCK. 

          (A)
PURCHASE AND SALE OF COMMON STOCK. Subject to the terms and conditions set
forth herein, the Company may issue and sell to the Investor, and the Investor
shall purchase from the Company, up to that number of Shares having an
aggregate Purchase Price of ten million dollars ($10,000,000). 

          (B)
DELIVERY OF PUT NOTICES. Subject to the terms and conditions of the Equity Line
Transaction Documents, and from time to time during the Open Period, the Company
may, in its sole discretion, deliver a Put Notice to the Investor which states
the dollar amount (designated in U.S. Dollars) (the “Put Amount”) of Shares
which the Company intends to sell to the Investor on a Closing Date (the
“Put”). The Put Amount shall be equal to up to either 1) two hundred percent
(200%) of the average daily volume (U.S. market only) of the Common Stock for
the three (3) Trading Days prior to the applicable Put Notice Date, multiplied
by the average of the three (3) daily closing prices immediately preceding the
Put Date or 2) two hundred thousand dollars ($200,000). During the Open Period,
the Company shall not be entitled to submit a Put Notice until the Pricing
Period for the prior Put has been completed. The Common Stock identified in the
Put Notice shall be purchased for a price equal to the Purchase Price. The
Company shall deliver to the Investor pursuant to this Agreement, certificates
representing the Shares to be issued to the Investor on such date and
registered in the name of the Investor (“Deposit Shares”). The number of
Deposit Shares shall be calculated by dividing the current price of the Common
Stock by the Put Amount (minus any prior Deposit Shares held, if any, by the
Investor). In lieu of delivering physical certificates representing the
Securities and provided that the Company’s transfer agent then is participating
in The Depository Trust Company (“DTC”) Fast Automated Securities Transfer
(“FAST”) program, upon request of the Investor, the Company shall use all commercially
reasonable efforts to cause its transfer agent to electronically transmit the
Securities by crediting the account of the Investor’s prime broker (as
specified by the Investor within a reasonable period in advance of the
Investor’s notice) with DTC through its Deposit Withdrawal Agent Commission
(“DWAC”) system. 

          (C)
COMPANY’S RIGHT TO SUSPEND. On each Put Notice submitted to the Investor by the
Company, the Company shall have the option to specify a Suspension Price for
that Put. In the event the Common Stock falls below the Suspension Price, the
Put shall be temporarily suspended. The Put shall resume at such time as the
Common Stock is above the Suspension Price, provided the dates for the Pricing
Period for that particular Put are still valid. In the event the Pricing Period
has been complete, any shares above the Suspension Price due to the Investor
shall be sold to the Investor by the Company at the Suspension Price under the
terms of this Agreement. The Suspension Price for a Put may not be changed by
the Company once submitted to the Investor. 

          (D)
CONDITIONS TO INVESTOR’S OBLIGATION TO PURCHASE SHARES. Notwithstanding
anything to the contrary in this Agreement, the Company shall not be entitled
to deliver a Put Notice and the Investor shall not be obligated to purchase any
Shares at a Closing unless each of the following conditions are satisfied: 

               (1)
a Registration Statement shall have been declared effective and shall remain
effective and available for the resale of all the Registrable Securities (as
defined in the Registration Rights Agreement) at all times until the Closing
with respect to the subject Put Notice; 

               (2)
at all times during the period beginning on the related Put Notice Date and
ending on and including the related Closing Date, the Common Stock shall have
been listed on the Principal Market and unless otherwise required by the
securities laws and regulations of Canada and the provinces and the rules and
regulations of the Principal Market or principal securities exchange or trading
market on which the Common Stock is traded or listed, shall not have been
suspended from trading thereon for a period of two (2) consecutive Trading Days
during the Open Period and the Company shall not have been notified of any
pending or threatened proceeding or other action to suspend the trading of the
Common Stock; 

               (3)
the Company has complied with its obligations and is otherwise not in breach of
or in default under this Agreement, the Registration Rights Agreement or any
other agreement executed in connection herewith which has not been cured prior
to delivery of the Put Notice; 

               (4)
no injunction shall have been issued and remain in force, or action commenced by
a governmental authority which has not been stayed or abandoned, prohibiting
the purchase or the issuance of the Securities; and 

               (5)
the issuance of the Securities pursuant to this Agreement will not violate any
shareholder approval requirements of the Principal Market. 

If any of the events described in clauses (1) through (5) above occurs
during a Pricing Period, then the Investor shall have no obligation to purchase
the Common Stock subject to the applicable Put Notice. 

5

          (E)
MECHANICS OF PURCHASE OF SHARES BY INVESTOR. The closing of the purchase by the
Investor of Shares (a “Closing”) shall occur on the date which is no later than
three (3) Trading Days following the last day of the Pricing Period (each a
“Closing Date”). On each Closing Date the Investor shall deliver to the Company
the Purchase Price to be paid for such Shares, based on the Put Amount set
forth in Section 2(B). In the event the Investor has not sold all the Deposit
Shares, the Company may elect to either: 1) request the remaining Deposit
Shares to be returned; or, 2) have the Investor hold the Deposit Shares toward
a future Put. 

          (F) OVERALL
LIMIT ON COMMON STOCK ISSUABLE. Notwithstanding anything contained herein to
the contrary, if during the Open Period the Company becomes listed on an
exchange that limits the number of shares of Common Stock that may be issued
without shareholder approval, then the number of Shares issuable by the Company
and purchasable by the Investor, shall not exceed that number of the shares of
Common Stock that may be issuable without shareholder approval (the “Maximum
Common Stock Issuance”). If such issuance of shares of Common Stock could cause
a delisting on the Principal Market, then the Maximum Common Stock Issuance
shall first be approved by the Company’s shareholders in accordance with
applicable law and the By-laws and Articles of Incorporation of the Company, as
amended. The parties understand and agree that the Company’s failure to seek or
obtain such shareholder approval shall in no way adversely affect the validity
and due authorization of the issuance and sale of Securities or the Investor’s
obligation in accordance with the terms and conditions hereof to purchase a
number of Shares in the aggregate up to the Maximum Common Stock Issuance
limitation, and that such approval pertains only to the applicability of the
Maximum Common Stock Issuance limitation provided in this Section 2(F). 

          (G)
INTENTIONALLY OMITTED. 

          (H)
LIMITATION ON AMOUNT OF OWNERSHIP. Notwithstanding anything to the contrary in
this Agreement, in no event shall the Investor be entitled to purchase that
number of Shares, which when added to the sum of the number of shares of Common
Stock beneficially owned (as such term is defined under Section 13(d) and Rule
13d-3 of the 1934 Act), by the Investor, would exceed 9.99% of the number of
shares of Common Stock outstanding on the Closing Date, as determined in
accordance with Rule 13d-1(j) of the 1934 Act. 

SECTION 3. INVESTOR’S REPRESENTATIONS, WARRANTIES AND COVENANTS. The
Investor represents and warrants to the Company, and covenants, that: 

          (A)
SOPHISTICATED INVESTOR. The Investor has, by reason of its business and
financial experience, such knowledge, sophistication and experience in
financial and business matters and in making investment decisions of this type
that it is capable of (1) evaluating the merits and risks of an investment in
the Securities and making an informed investment decision; (2) protecting its
own interest; and (3) bearing the economic risk of such investment for an
indefinite period of time. 

          (B)
AUTHORIZATION; ENFORCEMENT. The Investor has the requisite power and authority
to enter into and perform this Agreement and the Registration Rights Agreement.
The execution and delivery of the Equity Line Transaction Documents by the
Investor and the consummation by it of the transactions contemplated hereby and
thereby have been duly and validly authorized by the Investor’s general
partners and no further consent or authorization is required by its partners.
This Agreement has been duly and validly authorized, executed and delivered on
behalf of the Investor and is a valid and binding agreement of the Investor
enforceable against the Investor in accordance with its terms, subject as to
enforceability to general principles of equity and to applicable bankruptcy,
insolvency, reorganization, moratorium, liquidation and other similar laws
relating to, or affecting generally, the enforcement of applicable creditors’
rights and remedies. 

          (C) SECTION
9 OF THE 1934 ACT. During the term of this Agreement, the Investor will comply
with the provisions of Section 9 of the 1934 Act, and the rules promulgated
thereunder, with respect to transactions involving the Common Stock. The
Investor agrees not to sell the Company’s stock short, either directly or
indirectly through its affiliates, principals or advisors, the Company’s common
stock during the term of this Agreement. 

          (D)
ACCREDITED INVESTOR. Investor is an “Accredited Investor” as that term is
defined in Rule 501(a) of Regulation D of the 1933 Act and has completed the
U.S. Accredited Investor Certificate as set forth on Exhibit B to this
Agreement. Investor is not a “disqualified investor” by virtue of the investor
being subject to a “disqualifying event” as defined under Rule

506(b) through (e) of Regulation D of the 1933 Act as amended. 

          (E)
UNDERWRITER STATUS. The Investor is deemed an “underwriter” (as that term is
defined in Section 2(a)(11) of the Securities Act) in connection with the
registration of the Registrable Securities and will be identified as such in
the Registration Statement. As an underwriter, the Investor will not have Rule
144 of the Securities Act available as a resale exemption from registration
under the U.S. securities laws. 

          (F) NO
CONFLICTS. The execution, delivery and performance of the Transaction Documents
by the Investor and the consummation by the Investor of the transactions
contemplated hereby and thereby will not (1) result in a violation of the
partnership agreement or other organizational documents of the Investor, (2)
conflict with, or constitute a material default (or an event which with notice
or lapse of time or both would become a material default) under, or give to
others any rights of termination, amendment, acceleration or cancellation of,
any material agreement, contract, indenture mortgage, indebtedness or
instrument to which the Investor is a party, or to the Investor’s knowledge
result in a violation of any law, rule, regulation, order, judgment or decree
(including United States federal and state securities laws and regulations)
applicable to the Investor or by which any property or asset of the Investor is
bound or affected. 

          (G) NO
VIOLATIONS. Except as disclosed in Schedule 3(f), the Investor is not in
violation of any term of, or in default under, the partnership agreement of
other organizational documents of the Investor or any material contract,
agreement, mortgage, indebtedness, indenture, instrument, judgment, decree or
order or any statute, rule or regulation applicable to the Investor, except for
conflicts, defaults, terminations, amendments, accelerations, cancellations and
violations that would not, individually or in the aggregate, constitute or
reasonably be expected to constitute a material adverse effect on the Investor.
The business of the Investor is not being conducted, and shall not be
conducted, in violation of any law, statute, ordinance, rule, order or
regulation of any governmental authority or agency, regulatory or
self-regulatory agency, or court, except for violations the sanctions for which
either, individually or in the aggregate, would not have or reasonably be
expected to have a material adverse effect on the Investor. Except as
specifically contemplated by this Agreement and as required under the 1933 Act
or any securities laws of any states, to the Investor’s knowledge, the Investor
is not required to obtain any consent, authorization, permit or order of, or
make any filing or registration (except the filing of a registration statement
as outlined in the Registration Rights Agreement) with, any court, governmental
authority or agency, regulatory or self-regulatory agency or other third party
in order for it to execute, deliver or perform any of its obligations under, or
contemplated by, the Equity Line Transaction Documents in accordance with the
terms hereof or thereof except for those consents, authorizations, permits,
orders or filings as have been obtained or effected on or prior to the date
hereof and are in full force and effect as of the date hereof. Except as
disclosed in Schedule 3(f), the Investor is unaware of any facts or
circumstances which might give rise to any violation or default set forth in
this Section 3(G). 

7

          (H)
OPPORTUNITY TO DISCUSS. The Investor has received all materials relating to the
Company’s business, finance and operations which it has requested. The Investor
has had an opportunity to discuss the business, management and financial
affairs of the Company with the Company’s management. 

          (I)
INVESTMENT PURPOSES. The Investor is purchasing the Securities for its own
account for investment purposes and not with a view towards distribution and
agrees to resell or otherwise dispose of the Securities solely in accordance
with the registration provisions of the 1933 Act (or pursuant to an exemption
from such registration provisions). 

          (J) NO
REGISTRATION AS A DEALER. The Investor is not and will not be required to be
registered as a “dealer” under the 1934 Act, either as a result of its
execution and performance of its obligations under this Agreement or otherwise.

          (K) GOOD
STANDING. The Investor is a Limited Partnership, duly organized, validly
existing and in good standing in the state of Delaware. 

          (L) TAX
LIABILITIES. The Investor understands that it is liable for its own tax
liabilities. 

          (M)
ACKNOWLEDGEMENTS OF THE INVESTOR: The Investor acknowledges the following: 

	
  

 	
  

 
	
 (i)

 	
 no securities commission or similar regulatory authority in Canada
 has reviewed or passed on the merits of the securities of the Company; 

 
	
  

 	
  

 
	
 (ii)

 	
 there is no government or other issuance covering the securities of
 the Company; 

 
	
  

 	
  

 
	
 (iii)

 	
 there is risk associated with the purchase of the securities of the
 Company; 

 
	
  

 	
  

 
	
 (iv)

 	
 there are restrictions on a Investor’s ability to resell the
 Securities in Canada and it is the responsibility of the Investor to find out
 what those restriction are and to comply with them before selling the
 Securities; and 

 
	
  

 	
  

 
	
 (v)

 	
 the Company is relying on an exemption from the requirements to
 provide the purchaser with a prospectus and to sell securities through a
 person registered to sell Securities under the applicable securities laws of
 Canada and, as a consequence of acquiring Securities pursuant to this
 exemption, certain protections, rights and remedies provided by applicable
 securities laws in Canada including statutory rights of rescission or
 damages, will not be available to the Investor. 

 

	
  

 	
  

 
	
 (vi)

 	
 Canadian securities laws restrict the trading of the Securities for a
 period of four months and one day from their date of issue and as such the
 Securities may not be traded on the TSX Venture Exchange and otherwise in
 Canada until the date which is four months and one day from the date of
 issuance of the Securities. The Company and its transfer agent will take any
 necessary action to enforce these restrictions and all Securities issuable
 hereunder may not be offered and sold in Canada, through the facilities of
 the TSX Venture Exchange or any other Principal Market in Canada, or
 otherwise, directly or indirectly before such date, failing which the
 Investor will be in violation of Canadian securities legislation. The
 certificates representing the Common Stock issued pursuant to this Agreement
 will bear the following legends: 

 
	
  

 	
  

 
	
  

 	
  “Unless permitted under securities legislation, the holder of the
 securities shall not trade the securities before [insert date that is four
 months and one day following the distribution date].”

 
	
  

 	
  

 
	
  

 	
  “Without prior written approval of the TSX Venture Exchange and
 compliance with all applicable securities legislation, the securities
 represented by this certificate may not be sold, transferred, hypothecated or
 otherwise traded on or through the facilities of the TSX Venture Exchange or
 otherwise in Canada or to or for the benefit of a Canadian resident before
 [insert date that is four months and one day following the distribution
 date].”

 
	
  

 	
  

 
	
 (vii)

 	
 Except as otherwise set forth in this Agreement, no persons has made
 written or oral representation: (a) that any person will resell or repurchase
 the Securities, (b) that any person will refund the purchase price of the
 Securities, (c) as to the future price or value of the Securities; and (iv)
 that the Securities will be listed and posted for trading on any stock
 exchange or that application has been made to list the Securities on any
 stock exchange other than the TSX Venture Exchange. 

 

SECTION 4. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. Except as set
forth in the Schedules attached hereto, or as disclosed in the Company’s SEDAR
Documents, the Company represents and warrants to the Investor that: 

          (A)
ORGANIZATION AND QUALIFICATION. The Company is a corporation duly organized and
validly existing in good standing under the Canadian laws and has the requisite
corporate power and authorization to own its properties and to carry on its
business as now being conducted. Both the Company and the companies it owns or
controls (“Subsidiaries”) are duly qualified to do business and are in good
standing in every jurisdiction in which its ownership of property or the nature
of the business conducted by it makes such qualification necessary, except to
the extent that the failure to be so qualified or be in good standing would not
have a Material Adverse Effect. As used in this Agreement, “Material Adverse
Effect” means any material adverse effect on (1) the properties, assets,
operations, results of operations, or financial condition of the Company and
its Subsidiaries, if any, taken as a whole, (2) the transactions contemplated
hereby or by the agreements and instruments to be entered into in connection
herewith, or (3) the authority or ability of the Company to perform its
obligations under the Equity Line Transaction Documents other than as a result
of (a) changes adversely affecting the United States economy (so long as the
Company is not disproportionately affected thereby), (b) changes adversely
affecting the industry in which the Company operates (so long as the Company is
not disproportionately affected thereby), (c) the announcement or consummation
of the transactions contemplated by this Agreement, and (d) changes in the
market price of the Common Stock. 

9

          (B)
AUTHORIZATION; ENFORCEMENT; COMPLIANCE WITH OTHER INSTRUMENTS. 

               (1)
The Company has the requisite corporate power and authority to enter into and
perform the Equity Line Transaction Documents, and to perform its obligations
contemplated hereby and thereby. 

               (2)
The execution and delivery of the Equity Line Transaction Documents by the
Company and the consummation by it of the transactions contemplated hereby and
thereby, including without limitation the reservation for issuance and the
issuance of the Securities pursuant to this Agreement, have been duly and
validly authorized by the Company’s Board of Directors and no further consent
or authorization is required by the Company, its Board of Directors, or its
shareholders. 

               (3)
The Equity Line Transaction Documents have been duly and validly executed and
delivered by the Company. 

               (4)
The Equity Line Transaction Documents constitute the valid and binding
obligations of the Company enforceable against the Company in accordance with
their terms, except as such enforceability may be limited by general principles
of equity or applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation or similar laws relating to, or affecting generally, the
enforcement of creditors’ rights and remedies. 

          (C)
CAPITALIZATION. As of the date hereof, the authorized capital stock of the
Company consists of an unlimited number of shares of Common Stock with no par
value per share, of as of July 15, 2015, 47,861,502 shares were issued and
outstanding. Except as disclosed in the Company’s publicly available filings
with SEDAR or elsewhere in this Agreement: (1) no shares of the Company’s
capital stock are subject to preemptive rights or any other similar rights or
any liens or encumbrances suffered or permitted by the Company; (2) there are
no outstanding debt securities; (3) there are no outstanding shares of capital
stock, options, warrants, scrip, rights to subscribe to, calls or commitments
of any character whatsoever relating to, or securities or rights convertible
into, any shares of capital stock of the Company or any of its Subsidiaries, or
contracts, commitments, understandings or arrangements by which the Company or
any of its Subsidiaries is or may become bound to issue additional shares of
capital stock of the Company or any of its Subsidiaries or options, warrants,
scrip, rights to subscribe to, calls or commitments of any character whatsoever
relating to, or securities or rights convertible into, any shares of capital
stock of the Company or any of its Subsidiaries; (4) there are no agreements or
arrangements under which the Company or any of its Subsidiaries is obligated to
register the sale of any of their securities under the 1933 Act (except the
Registration Rights Agreement); (5) there are no outstanding securities of the
Company or any of its Subsidiaries which contain any redemption or similar
provisions, and there are no contracts, commitments, understandings or
arrangements by which the Company or any of its Subsidiaries is or may become
bound to redeem a security of the Company or any of its Subsidiaries; (6) there
are no securities or instruments containing anti-dilution or similar provisions
that will be triggered by the issuance of the Securities as described in this
Agreement; (7) the Company does not have any stock appreciation rights or
“phantom stock” plans or agreements or any similar plan or agreement; and (8)
there is no dispute as to the classification of any shares of the Company’s
capital stock. 

          The Company
has furnished to the Investor, or the Investor has had access through the SEDAR
website to, true and correct copies of the Company’s notice of articles, as
amended and in effect on the date hereof (the “Articles of Incorporation”), and
the Company’s articles, as in effect on the date hereof (the “By-laws”), and
the terms of all securities convertible into or exercisable for Common Stock
and the material rights of the holders thereof in respect thereto. 

          (D)
ISSUANCE OF SHARES. The Company is authorized to issue an unlimited numbers of
common shares voting and participating, without par value per share. Upon
issuance in accordance with this Agreement, the Securities will be validly
issued, fully paid for and non-assessable and free from all taxes, liens and
charges with respect to the issue thereof. 

          (E) NO
CONFLICTS. The execution, delivery and performance of the Equity Line
Transaction Documents by the Company and the consummation by the Company of the
transactions contemplated hereby and thereby will not (I) result in a violation
of the Articles of Incorporation, any Certificate of Designations, Preferences
and Rights of any outstanding series of preferred stock of the Company or the
By-laws; or (II) conflict with, or constitute a material default (or an event
which with notice or lapse of time or both would become a material default)
under, or give to others any rights of termination, amendment, acceleration or
cancellation of, any material agreement, contract, indenture mortgage,
indebtedness or instrument to which the Company or any of its Subsidiaries is a
party, or to the Company’s knowledge result in a violation of any law, rule,
regulation, order, judgment or decree (including United States federal and
state securities laws and regulations and the rules and regulations of the
Principal Market or principal securities exchange or trading market on which
the Common Stock is traded or listed) applicable to the Company or any of its
Subsidiaries or by which any property or asset of the Company or any of its
Subsidiaries is bound or affected. Except as disclosed in Schedule 4(e),
neither the Company nor its Subsidiaries is in violation of any term of, or in
default under, the Articles of Incorporation, any Certificate of Designations,
Preferences and Rights of any outstanding series of preferred stock of the
Company or the By-laws or their organizational charter or by-laws,
respectively, or any contract, agreement, mortgage, indebtedness, indenture,
instrument, judgment, decree or order or any statute, rule or regulation
applicable to the Company or its Subsidiaries, except for possible conflicts,
defaults, terminations, amendments, accelerations, cancellations and violations
that would not individually or in the aggregate have or constitute a Material
Adverse Effect. The business of the Company and its Subsidiaries is not being
conducted, and shall not be conducted, in violation of any law, statute,
ordinance, rule, order or regulation of any governmental authority or agency,
regulatory or self-regulatory agency, or court, except for possible violations
the sanctions for which either individually or in the aggregate would not have
a Material Adverse Effect. Except as specifically contemplated by this
Agreement and as required under the 1933 Act or any securities laws of any
states, or any other jurisdiction to which the Company is subject, to the
Company’s knowledge, the Company is not required to obtain any consent,
authorization, permit or order of, or make any filing or registration (except
the filing of a registration statement as outlined in the Registration Rights
Agreement between the Parties) with, any court, governmental authority or
agency, regulatory or self-regulatory agency or other third party in order for
it to execute, deliver or perform any of its obligations under, or contemplated
by, the Equity Line Transaction Documents in accordance with the terms hereof
or thereof. All consents, authorizations, permits, orders, filings and
registrations which the Company is required to obtain pursuant to the preceding
sentence have been obtained or effected on or prior to the date hereof and are
in full force and effect as of the date hereof. Except as disclosed in Schedule
4(e), the Company and its Subsidiaries are unaware of any facts or
circumstances which might give rise to any violation or default of any of the
foregoing. The Company is not, and will not be, in violation of the listing
requirements of the Principal Market as in effect on the date hereof and on
each of the Closing Dates and is not aware of any facts which would reasonably
lead to delisting of the Common Stock by the Principal Market in the
foreseeable future. 

11

          (F) SEDAR
DOCUMENTS; FINANCIAL STATEMENTS. The Company may make available to Investor
true and complete copies of the SEDAR Documents (including, without limitation,
proxy information and solicitation materials). As of their respective dates,
the SEDAR Documents complied in all material respects with the requirements of
Canadian securities laws, rules and regulations applicable to such SEDAR
Documents, and none of the SEDAR Documents 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. The financial
statements of the Company included in the SEDAR Documents comply as to form and
substance in all material respects with applicable accounting requirements and
the published rules and regulations of applicable Canadian securities
regulators or other applicable rules and regulations with respect thereto. Such
financial statements have been prepared in accordance with international
financial reporting standards applied on a consistent basis during the periods
involved (except (a) as may be otherwise indicated in such financial statements
or the notes thereto or (b) in the case of unaudited interim statements, to the
extent they may not include footnotes or may be condensed or summary
statements) and fairly present in all material respects the financial position
of the Company as of 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 year-end audit adjustments). 

          (G) ABSENCE
OF CERTAIN CHANGES. Except as otherwise set forth in the SEDAR Documents, the
Company does not intend to change the business operations of the Company in any
material way. The Company has not taken any steps, and does not currently
expect to take any steps, to seek protection pursuant to any bankruptcy law nor
does the Company or its Subsidiaries have any knowledge or reason to believe
that its creditors intend to initiate involuntary bankruptcy proceedings. 

          (H) ABSENCE
OF LITIGATION AND/OR REGULATORY PROCEEDINGS. Except as set forth in the SEDAR
Documents, there is no action, suit, proceeding, inquiry or investigation before
or by any court, public board, government agency, self-regulatory organization
or body pending or, to the knowledge of the executive officers of Company or
any of its Subsidiaries, threatened against or affecting the Company, the
Common Stock or any of the Company’s Subsidiaries or any of the Company’s or
the Company’s Subsidiaries’ officers or directors in their capacities as such,
in which an adverse decision could have a Material Adverse Effect. 

          (I)
ACKNOWLEDGMENT REGARDING INVESTOR’S PURCHASE OF SHARES. The Company
acknowledges and agrees that the Investor is acting solely in the capacity of
an arm’s length purchaser with respect to the Equity Line Transaction Documents
and the transactions contemplated hereby and thereby. The Company further
acknowledges that the Investor is not acting as a financial advisor or
fiduciary of the Company (or in any similar capacity) with respect to the
Equity Line Transaction Documents and the transactions contemplated hereby and
thereby and any advice given by the Investor or any of its respective
representatives or agents in connection with the Equity Line Transaction
Documents and the transactions contemplated hereby and thereby is merely
incidental to the Investor’s purchase of the Securities, and is not being
relied on by the Company. The Company further represents to the Investor that
the Company’s decision to enter into the Equity Line Transaction Documents has
been based solely on the independent evaluation by the Company and its
representatives. 

          (J) NO
UNDISCLOSED EVENTS, LIABILITIES, DEVELOPMENTS OR CIRCUMSTANCES. Except as set
forth in the SEDAR Documents, as of the date hereof, no event, liability,
development or circumstance has occurred or exists, or to the Company’s
knowledge is contemplated to occur, with respect to the Company or its
Subsidiaries or their respective business, properties, assets, prospects,
operations or financial condition, that would be required to be disclosed by
the Company under applicable securities laws on a registration statement filed
with the SEC relating to an issuance and sale by the Company of its Common
Stock and which has not been publicly announced. 

          (K)
EMPLOYEE RELATIONS. Neither the Company nor any of its Subsidiaries is involved
in any union labor dispute nor, to the knowledge of the Company or any of its
Subsidiaries, is any such dispute threatened. Neither the Company nor any of
its Subsidiaries is a party to a collective bargaining agreement, and the
Company and its Subsidiaries believe that relations with their employees are
good. At the time of signing this Agreement, no executive officer (as defined
in Rule 501(f) of the 1933 Act) has notified the Company that such officer
intends to leave the Company’s employ or otherwise terminate such officer’s
employment with the Company. 

          (L)
INTELLECTUAL PROPERTY RIGHTS. The Company and its Subsidiaries own or possess
adequate rights or licenses to use all trademarks, trade names, service marks,
service mark registrations, service names, patents, patent rights, copyrights,
inventions, licenses, approvals, governmental authorizations, trade secrets and
rights necessary to conduct their respective businesses as now conducted.
Except as set forth in the SEDAR Documents, none of the Company’s trademarks,
trade names, service marks, service mark registrations, service names, patents,
patent rights, copyrights, inventions, licenses, approvals, government
authorizations, trade secrets or other intellectual property rights necessary
to conduct its business as now or as proposed to be conducted have expired or
terminated, or are expected to expire or terminate within two (2) years from
the date of this Agreement. The Company and its Subsidiaries do not have any
knowledge of any infringement by the Company or its Subsidiaries of trademark,
trade name rights, patents, patent rights, copyrights, inventions, licenses,
service names, service marks, service mark registrations, trade secret or other
similar rights of others, or of any such development of similar or identical
trade secrets or technical information by others and, except as set forth in
the SEDAR Documents, there is no claim, action or proceeding being made or
brought against, or to the Company’s knowledge, being threatened against, the
Company or its Subsidiaries regarding trademark, trade name, patents, patent
rights, invention, copyright, license, service names, service marks, service
mark registrations, trade secret or other infringement; and the Company and its
Subsidiaries are unaware of any facts or circumstances which might give rise to
any of the foregoing. The Company and its Subsidiaries have taken commercially
reasonable security measures to protect the secrecy, confidentiality and value
of all of their intellectual properties. 

13

          (M)
ENVIRONMENTAL LAWS. The Company and its Subsidiaries (I) are, to the knowledge
of the Company and its Subsidiaries, in compliance with any and all applicable
foreign, federal, state and local laws and regulations relating to the
protection of human health and safety, the environment or hazardous or toxic
substances or wastes, pollutants or contaminants (“Environmental Laws”); (II)
have, to the knowledge of the Company, received all permits, licenses or other
approvals required of them under applicable Environmental Laws to conduct their
respective businesses; and (III) are in compliance, to the knowledge of the
Company, with all terms and conditions of any such permit, license or approval
where, in each of the three (3) foregoing cases, the failure to so comply would
have, individually or in the aggregate, a Material Adverse Effect. 

          (N) TITLE.
The Company and its Subsidiaries have good and marketable title to all personal
property owned by them which is material to the business of the Company and its
Subsidiaries, in each case free and clear of all liens, encumbrances and
defects except such as are described in the SEDAR Documents or such as do not
materially affect the value of such property and do not interfere with the use
made and proposed to be made of such property by the Company or any of its
Subsidiaries. Any real property and facilities held under lease by the Company
or any of its Subsidiaries are held by them under valid, subsisting and
enforceable leases with such exceptions as are not material and do not
interfere with the use made and proposed to be made of such property and
buildings by the Company and its Subsidiaries. 

          (O)
INSURANCE. Each of the Company’s Subsidiaries are insured by insurers of
recognized financial responsibility against such losses and risks and in such
amounts as management of the Company reasonably believes to be prudent and
customary in the businesses in which the Company and its Subsidiaries are
engaged. Neither the Company nor any of its Subsidiaries has any reason to
believe that it will not be able to renew its existing insurance coverage as
and when such coverage expires or to obtain similar coverage from similar
insurers as may be necessary to continue its business at a cost that would not
have a Material Adverse Effect. 

          (P)
REGULATORY PERMITS. The Company and its Subsidiaries have in full force and
effect all certificates, approvals, authorizations and permits from the
appropriate federal, state, local or foreign regulatory authorities and
comparable foreign regulatory agencies, necessary to own, lease or operate
their respective properties and assets and conduct their respective businesses,
and neither the Company nor any such Subsidiary has received any notice of
proceedings relating to the revocation or modification of any such certificate,
approval, authorization or permit, except for such certificates, approvals,
authorizations or permits which if not obtained, or such revocations or
modifications which, would not have a Material Adverse Effect. 

          (Q)
INTERNAL ACCOUNTING CONTROLS. The Company and each of its Subsidiaries maintain
a system of internal accounting controls sufficient to provide reasonable
assurance that (I) transactions are executed in accordance with management’s
general or specific authorizations; (II) transactions are recorded as necessary
to permit preparation of financial statements in conformity with international
financial reporting standards by a firm with membership to the PCAOB and CPAB and
to maintain asset accountability; (III) reasonable controls to safeguard assets
are in place; and (IV) the recorded accountability for assets is compared with
the existing assets at reasonable intervals and appropriate action is taken
with respect to any differences. 

          (R) NO
MATERIALLY ADVERSE CONTRACTS, ETC. Neither the Company nor any of its
Subsidiaries is subject to any charter, corporate or other legal restriction,
or any judgment, decree or order which in the judgment of the Company’s officers
has or is expected in the future to have a Material Adverse Effect. Neither the
Company nor any of its Subsidiaries is a party to any contract or agreement
which in the judgment of the Company’s officers has or is expected to have a
Material Adverse Effect. 

          (S) TAX
STATUS. The Company and each of its Subsidiaries has made or filed all income
and all other tax returns, reports and declarations required by any
jurisdiction to which it is subject (unless and only to the extent that the
Company and each of its Subsidiaries has set aside on its books provisions
reasonably adequate for the payment of all unpaid and unreported taxes) and has
paid all taxes and other governmental assessments and charges that are material
in amount, shown or determined to be due on such returns, reports and
declarations, except those being contested in good faith and has set aside on
its books provision reasonably adequate for the payment of all taxes for
periods subsequent to the periods to which such returns, reports or
declarations apply. There are no unpaid taxes in any material amount claimed to
be due by the taxing authority of any jurisdiction, and the officers of the
Company know of no basis for any such claim. 

          (T) CERTAIN
TRANSACTIONS. Except as set forth in the SEDAR Documents filed at least ten
(10) days prior to the date hereof and except for arm’s length transactions
pursuant to which the Company makes payments in the ordinary course of business
upon terms no less favorable than the Company could obtain from disinterested
third parties and other than the grant of stock options disclosed in the SEDAR
Documents or stock options granted in the future as contemplated by current
compensation agreements or plans disclosed in the SEDAR Documents, none of the
officers, directors, or employees of the Company is presently a party to any
transaction with the Company or any of its Subsidiaries (other than for
services as employees, officers and directors), including any contract,
agreement or other arrangement providing for the furnishing of services to or
by, providing for rental of real or personal property to or from, or otherwise
requiring payments to or from any officer, director or such employee or, to the
knowledge of the Company, any corporation, partnership, trust or other entity
in which any officer, director, or any such employee has a substantial interest
or is an officer, director, trustee or partner. 

          (U)
DILUTIVE EFFECT. The Company understands and acknowledges that the number of
shares of Common Stock issuable upon purchases pursuant to this Agreement will
increase in certain circumstances including, but not necessarily limited to,
the circumstance wherein the trading price of the Common Stock declines during
the period between the Effective Date and the end of the Open Period. The
Company’s executive officers and directors have studied and fully understand
the nature of the transactions contemplated by this Agreement and recognize
that they have a potential dilutive effect on the shareholders of the Company.
The Board of Directors of the Company has concluded, in its good faith business
judgment, and with full understanding of the implications, that such issuance
is in the best interests of the Company. The Company specifically acknowledges
that, subject to such limitations as are expressly set forth in the Equity Line
Transaction Documents, its obligation to issue shares of Common Stock upon
purchases pursuant to this Agreement is absolute and unconditional regardless
of the dilutive effect that such issuance may have on the ownership interests
of other shareholders of the Company. 

          (W) NO
GENERAL SOLICITATION. Neither the Company, nor any of its affiliates, nor any
person acting on its behalf, has engaged in any form of general solicitation or
general advertising (within the meaning of Regulation D) in connection with the
offer or sale of the Common Stock to be offered as set forth in this Agreement.

15

          (X) NO
BROKERS, FINDERS OR FINANCIAL ADVISORY FEES OR COMMISSIONS. No brokers, finders
or financial advisory fees or commissions will be payable by the Company, its
agents or Subsidiaries, with respect to the transactions contemplated by this
Agreement, except as otherwise disclosed in this Agreement. 

SECTION 5. COVENANTS OF THE COMPANY 

          (A)
EFFORTS. The Company shall use all commercially reasonable efforts to timely
satisfy each of the conditions set forth in Section 8 of this Agreement. 

          (B) BLUE
SKY. The Company shall, at its sole cost and expense, on or before each of the
Closing Dates, take such action as the Company shall reasonably determine is
necessary to qualify the Securities for, or obtain exemption for the Securities
for, sale to the Investor at each of the Closings pursuant to this Agreement
under applicable securities or “Blue Sky” laws and shall provide evidence of
any such action so taken to the Investor on or prior to the Closing Date. The
Investor agrees listing and maintaining the Company’s stock in a nationally
recognized securities manual pursuant to the Blue Sky standard manual exemption
is sufficient for this purpose. 

          (C)
REPORTING STATUS. The Company will seek reporting issuer status under the 1934
Act. Once a reporting issuer and until one of the following occurs, the Company
shall file all reports required to be filed with the SEC pursuant to the 1934
Act, and the Company shall not terminate its status, or take an action or fail
to take any action, which would terminate its status as a reporting company
under the 1934 Act: (1) this Agreement terminates pursuant to Section 8, or (2)
the date on which the Investor has sold all the Securities; provided that the
Investor shall promptly notify the Company after the Investor has sold all the
Securities. 

          (D) USE OF
PROCEEDS. The Company will use the proceeds from the sale of the Securities
(excluding amounts paid by the Company for fees as set forth in the Equity Line
Transaction Documents) for general corporate and working capital purposes and
acquisitions or assets, businesses or operations or for other purposes that the
Board of Directors, in its good faith, deems to be in the best interest of the
Company. 

          (E)
FINANCIAL INFORMATION. During the Open Period, the Company agrees to make
available to the Investor via the SEC’s EDGAR website or other electronic means
the following documents and information on the forms set forth: (1) within five
(5) Trading Days after the filing thereof with the SEC, a copy of its audited
financial statements, unaudited financial statements for the most recently
completed quarter, any current reports filed on Form 6-K and any Registration
Statements or amendments filed pursuant to the 1933 Act; and (2) copies of any
notices and other information made available or given to the shareholders of
the Company generally, contemporaneously with the making available or giving
thereof to the shareholders. 

          (F)
LISTING. The Company shall promptly secure and maintain the listing of all of
the Registrable Securities (as defined in the Registration Rights Agreement) on
the Principal Market and each other national securities exchange and automated
quotation system, if any, upon which shares of Common Stock are then listed
(subject to official notice of issuance) and shall maintain, such listing of
all Registrable Securities from time to time issuable under the terms of the
Equity Line Transaction Documents. Neither the Company nor any of its
Subsidiaries shall take any action which would be reasonably expected to result
in the delisting or suspension of the Common Stock on the Principal Market
unless otherwise required by the securities laws and regulations of Canada and
the provinces and the rules and regulations of the Principal Market or
principal securities exchange or trading market. The Company shall promptly
provide to the Investor copies of any notices it receives from the Principal
Market regarding the continued eligibility of the Common Stock for listing on
such automated quotation system or securities exchange. The Company shall pay
all fees and expenses in connection with satisfying its obligations under this
Section 5(F). 

          (G)
TRANSACTIONS WITH AFFILIATES. The Company shall not, and shall cause each of
its Subsidiaries not to, enter into, amend, modify or supplement, or permit any
Subsidiary to enter into, amend, modify or supplement, any agreement,
transaction, commitment or arrangement with any of its or any Subsidiary’s
officers, directors, persons who were officers or directors at any time during
the previous two (2) years, shareholders who beneficially own 5% or more of the
Common Stock, or Affiliates or with any individual related by blood, marriage
or adoption to any such individual or with any entity in which any such entity
or individual owns a 5% or more beneficial interest (each a “Related Party”),
except for (1) customary employment arrangements and benefit programs on
reasonable terms, (2) any agreement, transaction, commitment or arrangement on
an arms-length basis on terms no less favorable than terms which would have
been obtainable from a disinterested third party other than such Related
Party,(3) any agreement, transaction, commitment or arrangement which is
approved by a majority of the disinterested directors of the Company, or (4)
extensions or amendments of any existing employment agreement. For purposes
hereof, any director who is also an officer of the Company or any Subsidiary of
the Company shall not be a disinterested director with respect to any such
agreement, transaction, commitment or arrangement. “Affiliate” for purposes
hereof means, with respect to any person or entity, another person or entity
that, directly or indirectly, (1) has a 5% or more equity interest in that
person or entity, (2) has 5% or more common ownership with that person or
entity, (3) controls that person or entity, or (4) is under common control with
that person or entity. “Control” or “Controls” for purposes hereof means that a
person or entity has the power, directly or indirectly, to conduct or govern
the policies of another person or entity. 

          (H)
CORPORATE EXISTENCE. The Company shall use all commercially reasonable efforts
to preserve and continue the corporate existence of the Company. 

          (I) NOTICE
OF CERTAIN EVENTS AFFECTING REGISTRATION; SUSPENSION OF RIGHT TO MAKE A PUT.
The Company shall promptly notify the Investor upon the occurrence of any of
the following events in respect of a Registration Statement or related
prospectus in respect of an offering of the Securities: (1) receipt of any request
for additional information by the SEC or any other federal or state
governmental authority during the period of effectiveness of the Registration
Statement for amendments or supplements to the Registration Statement or
related prospectus; (2) the issuance by the SEC or any other federal or state
governmental authority of any stop order suspending the effectiveness of any
Registration Statement or the initiation of any proceedings for that purpose;
(3) receipt of any notification with respect to the suspension of the
qualification or exemption from qualification of any of the Securities for sale
in any jurisdiction or the initiation or notice of any proceeding for such
purpose; (4) the happening of any event that makes any statement made in such
Registration Statement or related prospectus or any document incorporated or
deemed to be incorporated therein by reference untrue in any material respect
or that requires the making of any changes in the Registration Statement,
related prospectus or documents so that, in the case of a Registration
Statement, it will not contain any untrue statement of a material fact or omit
to state any material fact required to be stated therein or necessary to make
the statements therein not misleading, and that in the case of the related
prospectus, it will not contain any untrue statement of a material fact or omit
to state any 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 (5) the Company’s reasonable determination that a
post-effective amendment to the Registration Statement would be appropriate,
and the Company shall promptly make available to Investor any such supplement
or amendment to the related prospectus. The Company shall not deliver to the
Investor any Put Notice during the continuation of any of the foregoing events
in this Section 5(I). 

17

          (J)
REIMBURSEMENT. If (I) the Investor becomes involved in any capacity in any
action, proceeding or investigation brought by any shareholder of the Company,
in connection with or as a result of the consummation of the transactions
contemplated by the Equity Line Transaction Documents, or if the Investor is
impleaded in any such action, proceeding or investigation by any person (other
than as a result of a breach of the Investor’s representations and warranties
set forth in this Agreement); or (II) the Investor becomes involved in any
capacity in any action, proceeding or investigation brought by the SEC against
or involving the Company (unless the Company is involved in the action,
proceeding or investigation as a witness only) or in connection with or as a
result of the consummation of the transactions contemplated by the Equity Line
Transaction Documents (other than as a result of a breach of the Investor’s
representations and warranties set forth in this Agreement), or if this
Investor is impleaded in any such action, proceeding or investigation by any
person, then in any such case, the Company will reimburse the Investor for its
actual, reasonable legal and other expenses (including the cost of any
investigation and preparation) incurred in connection therewith, as such
expenses are incurred. In addition, other than with respect to any matter in
which the Investor is a named party, the Company will pay to the Investor the
charges, as reasonably determined by the Investor, for the time of any officers
or employees of the Investor devoted to appearing and preparing to appear as
witnesses, assisting in preparation for hearings, trials or pretrial matters,
or otherwise with respect to inquiries, hearing, trials, and other proceedings
relating to the subject matter of this Agreement. The reimbursement obligations
of the Company under this section shall be in addition to any liability which
the Company may otherwise have, shall extend upon the same terms and conditions
to any affiliates of the Investor that are actually named in such action,
proceeding or investigation, and partners, directors, agents, employees,
attorneys, accountants, auditors and controlling persons (if any), as the case
may be, of Investor and any such affiliate, and shall be binding upon and inure
to the benefit of any successors of the Company, the Investor and any such
affiliate and any such person. However, in all events, if the Investor is found
to be guilty of violations of the federal or state securities laws (or pleads
“no contest” or other similar plea or settles an investigation or pleading
without a specific finding of liability but is still subject to civil or
criminal liability), the Company will have no responsibility to pay any of the
Investor’s fees and expenses regardless of whether or not the Company is or is
also found to have liability. 

          (K)
TRANSFER AGENT. Upon effectiveness of the Registration Statement, and for so
long as the Registration Statement is effective, the Company shall deliver
instructions to its transfer agent to issue Shares to the Investor that are
covered for resale by the Registration Statement free of restrictive legends,
other than as required pursuant to Canadian securities laws and the policies of
the TSX Venture Exchange as set forth in subsection 3(M)(vi). 

          (L)
ACKNOWLEDGEMENT OF TERMS. The Company hereby represents and warrants to the
Investor that: (1) it is voluntarily entering into this Agreement of its own
freewill, (2) it is not entering this Agreement under economic duress, (3) the
terms of this Agreement are reasonable and fair to the Company, and (4) the
Company has had independent legal counsel of its own choosing review this
Agreement, advise the Company with respect to this Agreement, and represent the
Company in connection with this Agreement. 

SECTION 6. CONDITIONS OF THE COMPANY’S OBLIGATION TO SELL. The obligation
hereunder of the Company to issue and sell the Securities to the Investor is
further subject to the satisfaction, at or before each Closing Date, of each of
the following conditions set forth below. These conditions are for the
Company’s sole benefit and may be waived by the Company at any time in its sole
discretion. 

          (A) The
Investor shall have executed this Agreement and the Registration Rights
Agreement and delivered the same to the Company. 

          (B) The
Investor shall have delivered to the Company the Purchase Price for the
Securities being purchased by the Investor between the end of the Pricing
Period and the Closing Date via a Put Settlement Sheet (hereto attached as
Exhibit D). Immediately after receipt of confirmation of delivery of such
Securities to the Investor, the Investor, by wire transfer of immediately
available funds pursuant to the wire instructions provided by the Company, will
disburse the funds constituting the Purchase Amount. 

          (C) The
representations and warranties of the Investor shall be true and correct in all
material respects as of the date when made and as of the applicable Closing
Date as though made at that time and the Investor shall have performed,
satisfied and complied in all material respects with the covenants, agreements
and conditions required by the Equity Line Transaction Documents to be
performed, satisfied or complied with by the Investor on or before such Closing
Date. 

          (D) No
statute, rule, regulation, executive order, decree, ruling or injunction shall
have been enacted, entered, promulgated or endorsed by any court or
governmental authority of competent jurisdiction which prohibits the
consummation of any of the transactions contemplated by this Agreement. 

SECTION 7. FURTHER CONDITIONS OF THE INVESTOR’S OBLIGATION TO PURCHASE.
The obligation of the Investor hereunder to purchase Shares is subject to the
satisfaction, on or before each Closing Date, of each of the following
conditions set forth below. 

          (A) The Company
shall have executed the Equity Line Transaction Documents and delivered the
same to the Investor. 

          (B) The
Common Stock shall be authorized for quotation on the Principal Market and
trading in the Common Stock shall not have been suspended by the Principal
Market or the SEC, unless otherwise required by the securities laws and
regulations of Canada and the provinces and the rules and regulations of the
Principal Market or principal securities exchange or trading market on which
the Common Stock is traded or listed, at any time beginning on the date hereof
and through and including the respective Closing Date. 

          (C) The
representations and warranties of the Company shall be true and correct in all
material respects as of the date when made and as of the applicable Closing
Date as though made at that time and the Company shall have performed,
satisfied and complied in all material respects with the covenants, agreements
and conditions required by the Equity Line Transaction Documents to be
performed, satisfied or complied with by the Company on or before such Closing
Date. The Investor may request an update as of such Closing Date regarding the
representation contained in Section 4(C) above. 

19

          (D) The
Company shall have executed and delivered to the Investor the certificates
representing, or have executed electronic book-entry transfer of, the
Securities (in such denominations as the Investor shall request) being
purchased by the Investor before the Pricing Period. 

          (E) The
Board of Directors of the Company shall have adopted resolutions consistent
with Section 4(B)(2) above (the “Resolutions”) and such Resolutions shall not
have been amended or rescinded prior to such Closing Date. 

          (F) No
statute, rule, regulation, executive order, decree, ruling or injunction shall
have been enacted, entered, promulgated or endorsed by any court or
governmental authority of competent jurisdiction which prohibits the
consummation of any of the transactions contemplated by this Agreement. 

          (G) The
Registration Statement shall be effective on each Closing Date and no stop
order suspending the effectiveness of the Registration statement shall be in
effect or to the Company’s knowledge shall be pending or threatened.
Furthermore, on each Closing Date (1) neither the Company nor the Investor
shall have received notice that the SEC has issued or intends to issue a stop
order with respect to such Registration Statement or that the SEC otherwise has
suspended or withdrawn the effectiveness of such Registration Statement, either
temporarily or permanently, or intends or has threatened to do so (unless the
SEC’s concerns have been addressed and Investor is reasonably satisfied that
the SEC no longer is considering or intends to take such action), and (2) no
other suspension of the use or withdrawal of the effectiveness of such
Registration Statement or related prospectus shall exist. 

          (H) At the
time of each Closing, the Registration Statement (including information or
documents incorporated by reference therein) and any amendments or supplements
thereto shall not contain any untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary to make the
statements therein not misleading or which would require public disclosure or
an update supplement to the prospectus. 

          (I) The
conditions to such Closing set forth in Section 2(E) shall have been satisfied
on or before such Closing Date. 

          (J) The
Company shall have certified to the Investor the number of Shares of Common
Stock outstanding when a Put Notice is given to the Investor. The Company’s
delivery of a Put Notice to the Investor constitutes the Company’s
certification of the reservation for issuance of the necessary number of shares
of Common Stock subject to a Put Notice. 

SECTION 8. TERMINATION. This Agreement shall terminate upon any of the
following events: 

          (A) when
the Investor has purchased an aggregate of ten million dollars $10,000,000 in
the Common Stock of the Company pursuant to this Agreement; or, 

          (B) on the
date which is thirty-six (36) months after the Effective Date; or, 

          (C) upon
written notice of the Company to the Investor. Any and all shares, or penalties,
if any, due under this Agreement shall be immediately payable and due upon
termination of this Agreement. 

SECTION 9. SUSPENSION. The Company’s right to cause the Investor to
purchase Shares pursuant to a Put Notice, and the Investor’s obligation to
purchase Shares under this Agreement shall be suspended upon any of the
following events, and shall remain suspended until such event is rectified: 

          (A) The
Common Stock ceases to be registered under the 1934 Act or listed or traded on
the Principal Market, not including a change from one exchange to another
exchange as defined by the term Principal Market. Immediately upon the
occurrence of one of the above-described events, the Company shall send written
notice of such event to the Investor. 

SECTION 10. INDEMNIFICATION. In consideration of the parties’ mutual
obligations set forth in the Transaction Documents, each of the parties (in
such capacity, an “Indemnitor”) shall defend, protect, indemnify and hold
harmless the other and all of the other party’s shareholders, officers,
directors, employees, counsel, and direct or indirect investors and any of the
foregoing person’s agents or other representatives (including, without
limitation, those retained in connection with the transactions contemplated by
this Agreement) (collectively, the “Indemnitees”) from and against any and all
actions, causes of action, suits, claims, losses, costs, penalties, fees,
liabilities and damages, and reasonable expenses in connection therewith
(irrespective of whether any such Indemnitee is a party to the action for which
indemnification hereunder is sought), and including reasonable attorneys’ fees
and disbursements (the “Indemnified Liabilities”), incurred by any Indemnitee
as a result of, or arising out of, or relating to (A) any material
misrepresentation or breach of any representation or warranty made by the
Indemnitor in the Equity Line Transaction Documents or any other certificate,
instrument or document contemplated hereby or thereby; (B) any material breach
of any covenant, agreement or obligation of the Indemnitor contained in the
Equity Line Transaction Documents or any other certificate, instrument or
document contemplated hereby or thereby; or (C) any cause of action, suit or
claim brought or made against such Indemnitee by a third party and arising out
of or resulting from the execution, delivery, performance or enforcement of the
Equity Line Transaction Documents or any other certificate, instrument or
document contemplated hereby or thereby, except insofar as (Y) any such
misrepresentation, breach or any untrue statement, alleged untrue statement,
omission or alleged omission is made in reliance upon and in conformity with
information furnished to Indemnitor which is specifically intended for use in the
preparation of any such Registration Statement, preliminary prospectus,
prospectus or amendments to the prospectus, (Z) any such Indemnified
Liabilities resulted or arose from the breach by the Indemnitee party hereto of
any representation, warranty, covenant or agreement of such Indemnitee
contained in the Equity Line Transaction Documents or the negligence,
recklessness, willful misconduct or bad faith of such Indemnitee. To the extent
that the foregoing undertaking by the Indemnitor may be unenforceable for any
reason, the Indemnitor shall make the maximum contribution to the payment and
satisfaction of each of the Indemnified Liabilities which is permissible under
applicable law. The indemnity provisions contained herein shall be in addition
to any cause of action or similar rights Indemnitor may have, and any
liabilities the Indemnitor or the Indemnitees may be subject to. 

SECTION 11. GOVERNING LAW; DISPUTES SUBMITTED TO ARBITRATION. All
disputes arising under this agreement shall be governed by and interpreted in
accordance with the laws of the Commonwealth of Massachusetts, without regard
to principles of conflict of laws. The parties to this agreement will submit
all disputes arising under this agreement to arbitration in Boston, MA before a
single arbitrator of the American Arbitration Association (“AAA”). The
arbitrator shall be selected by application of the rules of the AAA, or by
mutual agreement of the parties, except that such arbitrator shall be an
attorney admitted to practice law in Commonwealth of Massachusetts. No party to
this Agreement will challenge the jurisdiction or venue provisions as provided
in this section. No party to this agreement will challenge the jurisdiction or
venue provisions as provided in this section. Nothing contained herein shall
prevent the party from obtaining an injunction. 

21

SECTION 12. LEGAL EXPENSES; FEE SHARES AND MISCELLANEOUS EXPENSES.
Except as otherwise set forth in the Equity Line Transaction Documents, each
party shall pay the fees and expenses of its advisers, counsel, the accountants
and other experts, if any, and all other expenses incurred by such party
incident to the negotiation, preparation, execution, delivery and performance
of this Agreement. Any attorneys’ fees and expenses incurred by either the
Company or the Investor in connection with the preparation, negotiation,
execution and delivery of any amendments to this Agreement or relating to the
enforcement of the rights of any party, after the occurrence of any breach of
the terms of this Agreement by another party or any default by another party in
respect of the transactions contemplated hereunder, shall be paid on demand by
the party which breached the Agreement and/or defaulted, as the case may be.
The Company shall pay all stamp and other taxes and duties levied in connection
with the issuance of any Securities. The Company has paid fifteen thousand
dollars ($15,000) for the preparation of the Equity Line Transaction Documents.
If the Company is not DWAC eligible at the time of a Put Closing, there will be
a $2,000 charge on each Closing Date to cover costs associated with, but not
limited to: deposit costs, legal review fees and wire fees. If the Company is
DWAC eligible at the time of a Put Closing, there will be a $500 charge on each
Closing Date. 

SECTION 13. COUNTERPARTS. This Agreement may be executed in two or more
identical counterparts, all of which 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; provided that a facsimile signature
shall be considered due execution and shall be binding upon the signatory
thereto with the same force and effect as if the signature were an original
signature. 

SECTION 14. HEADINGS; SINGULAR/PLURAL. The headings of this Agreement
are for convenience of reference and shall not form part of, or affect the
interpretation of, this Agreement. Whenever required by the context of this
Agreement, the singular shall include the plural and masculine shall include
the feminine. 

SECTION 15. SEVERABILITY. If any provision of this Agreement shall be
invalid or unenforceable in any jurisdiction, such invalidity or
unenforceability shall not affect the validity or enforceability of the
remainder of this Agreement in that jurisdiction or the validity or
enforceability of any provision of this Agreement in any other jurisdiction. 

SECTION 16. ENTIRE AGREEMENT; AMENDMENTS. This Agreement is the FINAL
AGREEMENT between the Company and the Investor with respect to the terms and
conditions set forth herein, and, the terms of this Agreement may not be
contradicted by evidence of prior, contemporaneous, or subsequent oral
agreements of the Parties. No provision of this Agreement may be amended other
than by an instrument in writing signed by the Company and the Investor, and no
provision hereof may be waived other than by an instrument in writing signed by
the party against whom enforcement is sought. The execution and delivery of the
Equity Line Transaction Documents shall not alter the force and effect of any
other agreements between the Parties, and the obligations under those
agreements. 

SECTION 17. NOTICES. Any notices or other communications required or
permitted to be given under the terms of this Agreement must be in writing and
will be deemed to have been delivered (A) upon receipt, when delivered
personally; (B) upon receipt, when sent by facsimile or email with the signed
document attached in PDF format (provided confirmation of transmission is
mechanically or electronically generated and kept on file by the sending
party); or (C) one (1) day after deposit with a nationally recognized overnight
delivery service, in each case properly addressed to the party to receive the
same. The addresses and facsimile numbers for such communications shall be: 

          If to the Company: 

          NATCORE
TECHNOLOGY, INC. 
          189 N. Water Street, Suite 700 

          Rochester, NY 14604 

          Telephone: (585) 286-9180 

          If to the Investor: 

          Dutchess
Opportunity Fund, II, LP 

          50 Commonwealth Avenue, Suite 2 

          Boston, MA 02116 

          Telephone: (617) 301-4700 

          Each party shall provide five (5) days prior written notice to the
other party of any change in address or facsimile number. 

SECTION 18. NO ASSIGNMENT. This Agreement and any rights, agreements or
obligations hereunder may not be assigned, by operation of law, merger or
otherwise, and any purported assignment by a party without prior written
consent of the other party will be null and void and not binding on such other
party. Subject to the preceding sentence, all of the terms, agreements,
covenants, representations, warranties and conditions of this Agreement are
binding upon, and inure to the benefit of and are enforceable by, the parties
and their respective successors and assigns. 

SECTION 19. NO THIRD PARTY BENEFICIARIES. This Agreement is intended
for the benefit of the parties hereto and is not for the benefit of, nor may
any provision hereof be enforced by, any other person, except that the Company
acknowledges that the rights of the Investor may be enforced by its general
partner. 

SECTION 20. SURVIVAL. The indemnification provisions set forth in
Section 11, shall survive each of the Closings and the termination of this
Agreement. 

SECTION 21. PUBLICITY. The Company and the Investor shall consult with
each other in issuing any press releases or otherwise making public statements
with respect to the transactions contemplated hereby and no party shall issue
any such press release or otherwise make any such public statement without the
prior consent of the other party, which consent shall not be unreasonably
withheld or delayed, except that no prior consent shall be required if such
disclosure is required by law, in which such case the disclosing party shall
provide the other party with prior notice of such public statement. The
Investor acknowledges that this Agreement and all or part of the Equity Line
Transaction Documents may be deemed to be “material contracts” as that term is
defined by Item 601(b)(10) of Regulation S-K, and that the Company may
therefore be required to file such documents as exhibits to reports or
registration statements filed under the 1933 Act or the 1934 Act. The Investor
acknowledges that this Agreement and all or part of the Equity Line Transaction
Documents may be deemed to be “material contracts” as that term is defined by
Subsection 1(1) of National Instrument 51-102 Continuous Disclosure, and that
the Company may therefore be required to file such documents as exhibits to
reports or registration statements filed under the National Instrument 51-102
Continuous Disclosure. The Investor further agrees that the status of such
documents and materials as material contracts shall be determined solely by the
Company, in consultation with its counsel. 

23

SECTION 22. FURTHER ASSURANCES. Each party shall do and perform, or
cause to be done and performed, all such further acts and things, and shall
execute and deliver all such other agreements, certificates, instruments and
documents, as the other party may reasonably request in order to carry out the
intent and accomplish the purposes of this Agreement and the consummation of
the transactions contemplated hereby. 

SECTION 23. NO STRICT CONSTRUCTION. The language used in this Agreement
will be deemed to be the language chosen by the parties to express their mutual
intent, and no rules of strict construction will be applied against any party,
as the parties mutually agree that each has had a full and fair opportunity to
review this Agreement and seek the advice of counsel on it. 

SECTION 24. REMEDIES. The Investor shall have all rights and remedies
set forth in this Agreement and the Registration Rights Agreement and all
rights and remedies which such holders have been granted at any time under any
other agreement or contract and all of the rights which the Investor has by
law. Any person having any rights under any provision of this Agreement shall
be entitled to enforce such rights specifically (without posting a bond or
other security), to recover damages by reason of any default or breach of any provision
of this Agreement, including the recovery of reasonable attorneys fees and
costs, and to exercise all other rights granted by law. 

SECTION 25. PAYMENT SET ASIDE. To the extent that the Company makes a
payment or payments to the Investor hereunder or under the Registration Rights
Agreement or the Investor enforces or exercises its rights hereunder or
thereunder, and such payment or payments or the proceeds of such enforcement or
exercise or any part thereof are subsequently invalidated, declared to be
fraudulent or preferential, set aside, recovered from, disgorged by or are
required to be refunded, repaid or otherwise restored to the Company, a
trustee, receiver or any other person under any law (including, without
limitation, any bankruptcy law, state or federal law, common law or equitable
cause of action), then to the extent of any such restoration the obligation or
part thereof originally intended to be satisfied shall be revived and continued
in full force and effect as if such payment had not been made or such
enforcement or setoff had not occurred. 

SECTION 26. NON-DISCLOSURE OF NON-PUBLIC INFORMATION AFTER REGISTRATION
STATEMENT IS EFFECTIVE. 

          (A) The
Company shall not disclose non-public information concerning the Company to the
Investor, its advisors, or its representatives. 

          (B) Nothing
herein shall require the Company to disclose non-public information to the
Investor or its advisors or representatives, provided, however, that
notwithstanding anything herein to the contrary, the Company will, as
hereinabove provided, immediately notify the advisors and representatives of
the Investor and, if any, underwriters, of any event or the existence of any
circumstance (without any obligation to disclose the specific event or circumstance)
of which it becomes aware, constituting non-public information (whether or not
requested of the Company specifically or generally during the course of due
diligence by such persons or entities), which, if not disclosed in the
prospectus included in the Registration Statement would cause such prospectus
to include a material misstatement or to omit a material fact required to be
stated therein in order to make the statements, therein, in light of the
circumstances in which they were made, not misleading. Nothing contained in
this Section 29 shall be construed to mean that such persons or entities other
than the Investor (without the written consent of the Investor prior to
disclosure of such information) may not obtain non-public information in the course
of conducting due diligence in accordance with the terms of this Agreement and
nothing herein shall prevent any such persons or entities from notifying the
Company of their opinion that based on such due diligence by such persons or
entities, that the Registration Statement contains an untrue statement of
material fact or omits a material fact required to be stated in the
Registration Statement or necessary to make the statements contained therein,
in light of the circumstances in which they were made, not misleading. 

SECTION 27. PRICING OF COMMON STOCK. For purposes of this Agreement,
the VWAP of the Common Stock shall be as reported on a direct feed service. 

SECTION 28. ACKNOWLEDGEMENTS OF THE PARTIES. Notwithstanding anything
in this Agreement to the contrary, the parties hereto hereby acknowledge and
agree to the following: (A) the Investor makes no representations or covenants
that it will not engage in trading in the securities of the Company, other than
the Investor will not sell short any of the Company’s common stock at any time
during a Pricing Period; (B) the Company shall, by 8:30 a.m. Eastern Time on
the fourth Trading Day following the date hereof, file a current report on Form
6-K disclosing the material terms of the transactions contemplated hereby and
in the other Equity Line Transaction Documents; (C) the Company has not and
shall not provide material non-public information to the Investor unless prior
thereto the Investor shall have executed a written agreement regarding the confidentiality
and use of such information; and (D) the Company understands and confirms that
the Investor will be relying on the acknowledgements set forth in clauses (A)
through (C) above if the Investor effects any transactions in the securities of
the Company. 

[Signature Page Follows]

25

SIGNATURE PAGE OF INVESTMENT AGREEMENT

          Your
signature on this Signature Page evidences your agreement to be bound by the
terms and conditions of the Investment Agreement as of the date first written
above. 

           The undersigned signatory hereby certifies
that he has read and understands the Investment Agreement, and the
representations made by the undersigned in this Investment Agreement are true
and accurate, and agrees to be bound by its terms. 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 DUTCHESS OPPORTUNITY FUND, II, L.P.

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 

 	
  

 
	
  

 	
  

 	 

 	
  

 
	
  

 	
  

 	
 Douglas H.
 Leighton

 
	
  

 	
  

 	
 Managing
 Member of:

 
	
  

 	
  

 	
 Dutchess
 Capital Management, II, LLC

 
	
  

 	
  

 	
 General
 Partner to:

 
	
  

 	
  

 	
 Dutchess
 Opportunity Fund, II, LP

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 NATCORE TECHNOLOGY, INC.

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 

 	
  

 
	
  

 	
  

 	 

 	
  

 
	
  

 	
  

 	
 Charles R.
 Provini

 
	
  

 	
  

 	
 President
 & CEO

 

 

	
  

 	
  

 	
  

 
	
 LIST OF EXHIBITS

 
	 

 	
  

 	
  

 
	
 EXHIBIT A

 	
  

 	
 Registration
 Rights Agreement

 
	
 EXHIBIT B

 	
  

 	
 Form of
 Opinion of Company’s Counsel

 
	
 EXHIBIT C

 	
  

 	
 Put Notice

 
	
 EXHIBIT D

 	
  

 	
 Put
 Settlement Sheet

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EXHIBIT A

REGISTRATION RIGHTS AGREEMENT

(Attached)

 

 

 

 

 

 

 

 

 

 

 

 

 

A-1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

B-1

EXHIBIT C

FORM OF PUT NOTICE

Date:
____________ 

RE:
Put Notice Number __________

Dear
Mr. Leighton: 

This
is to inform you that as of today, NATCORE TECHNOLOGY, INC. a British Columbia corporation (the “Company”),
hereby elects to exercise its right pursuant to the Investment Agreement
entered into with Dutchess Opportunity Fund II, LP (“Dutchess”)
to require Dutchess to purchase shares of its common stock. The Company hereby
certifies that: 

1.
The undersigned is the duly elected ______________ of the Company. 

2.
There are no fundamental changes to the information set forth in the
Registration Statement which would require the Company to file a post-effective
amendment to the Registration Statement. 

3.
The Company has performed in all material respects all covenants and agreements
to be performed by the Company and has complied in all material respects with
all obligations and conditions contained in this Agreement on or prior to the
Put Notice Date, and shall continue to perform in all material respects all
covenants and agreements to be performed by the Company through the applicable
Put Date. All conditions to the delivery of this Put Notice are satisfied as of
the date hereof. 

4.
The undersigned hereby represents, warrants and covenants that it has made all
filings required to be made by it pursuant to applicable securities laws. All
filings and other public disclosures made by the Company, including, without
limitation, all press releases, analysts meetings and calls, etc.
(collectively, the “Public Disclosures”), have been reviewed and
approved for release by the Company’s attorneys and, if containing financial
information, the Company’s independent certified public accountants. None of
the Company’s Public Disclosures contain any untrue statement of a material
fact or omit to state any 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. 

5.
The amount of this put is up to ________________ shares. 

6.
The Pricing Period runs from ________________
until ________________. 

7.
The Suspension Price is $ ________________. 

8.
The current number of shares issued and outstanding as of the Company are:
________________ 

9.
The number of shares currently available for resale pursuant to the
Registration Statement on Form F-1 for the Equity Line are: ________________ 

10.
The Company shall transfer to the Investor ___________ Deposit Shares. 

	
  

 	
  

 	
  

 
	
  

 	
 NATCORE TECHNOLOGY, INC. 

 
	
  

 	
  

 
	
  

 	
 By: 

 	
  

 
	
  

 	
  

 	 

 
	
  

 	
 Name: 

 	
  

 
	
  

 	
  

 	 

 
	
  

 	
 Title: 

 	
  

 
	
  

 	
  

 	 

 
	
  

 	
  

 	
  

 

EXHIBIT D

FORM OF PUT SETTLEMENT SHEET

Date: ____________

RE: NATCORE, INC.

Dear ____________: 

Pursuant to the Put given by NATCORE TECHNOLOGY, INC. to Dutchess
Opportunity Fund, II, LP on _________ 20___, we are now submitting the amount
of common shares sold. 

          XXXXXX 

The Remaining Deposit shares are__________. 

Please sign below and we will have the funds wired to the Company. 

 

Regards, 

Douglas H. Leighton 

	
  

 	
  

 	
  

 
	
 DATE

 	
  

 	
 PRICE

 
	 

 	
  

 	 

 
	
 Date of Day 1

 	
  

 	
 VWAP of Day 1

 
	
 Date of Day 2

 	
  

 	
 VWAP of Day 2

 
	
 Date of Day 3

 	
  

 	
 VWAP of Day 3

 
	
 Date of Day 4

 	
  

 	
 VWAP of Day 4

 
	
 Date of Day 5

 	
  

 	
 VWAP of Day 5

 

 

	
  

 	
  

 
	
 LOWEST VWAP IN PRICING
 PERIOD 

 	
  

 
	
  

 	 

 
	
 PUT AMOUNT

 	
  

 
	
  

 	 

 
	
 PURCHASE PRICE
 (NINETY-FIVE PERCENT (95%)) 

 	
  

 
	
  

 	 

 
	
 AMOUNT OF SHARES SOLD 

 	
  

 
	
  

 	 

 
	
 DEPOSIT SHARES BALANCE
 FORWARD 

 	
  

 
	
  

 	 

 
	
 DEPOSIT SHARES
 BALANCE 

 	
  

 
	
  

 	 

 
	
  

 	
  

 

The undersigned has completed this Put as of this ___th day of
_________, 20__. 

	
  

 	
  

 	
  

 
	
  

 	
 NATCORE TECHNOLOGY, INC. 

 
	
  

 	
  

 
	
  

 	
 By: 

 	
  

 
	
  

 	
  

 	 

 
	
  

 	
 Name: 

 	
  

 
	
  

 	
  

 	 

 
	
  

 	
 Title:UNITED STATES

REGISTRATION RIGHTS AGREEMENT

          Registration
Rights Agreement (the “Agreement”), dated as of July 15, 2015, by and
between Natcore Technology, Inc., a corporation organized under the laws of
British Columbia (the “Company”) and Dutchess Opportunity Fund, II, LP,
a Delaware Limited Partnership (the “Investor”). 

          Whereas,
in connection with the Investment Agreement by and between the Company and the
Investor of this date (the “Investment Agreement”), the Company has
agreed to issue and sell to the Investor up to $10,000,000 in value payable in
shares of the Company’s Common Stock, no par value per share (the “Common
Stock”), to be purchased pursuant to the terms and subject to the
conditions set forth in the Investment Agreement; and 

          Whereas,
to induce the Investor to execute and deliver the Investment Agreement, the
Company has agreed to provide certain registration rights under the Securities
Act of 1933, as amended, and the rules and regulations thereunder, or any
similar successor statute (collectively, the “1933 Act”), and applicable
state securities laws, with respect to the shares of Common Stock issuable
pursuant to the Investment Agreement. 

          Now
therefore, in consideration of the foregoing promises and the mutual covenants
contained hereinafter and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Company and the Investor
hereby agree as follows: 

Section 1. DEFINITIONS. 

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

          “Execution
Date” means the date of this Agreement set forth above. 

          “Person”
means a corporation, a limited liability company, an association, a
partnership, an organization, a business, an individual, a governmental or
political subdivision thereof or a governmental agency. 

          “Principal
Market” shall mean Canadian Securities Exchange, Toronto Stock Exchange,
TSX Venture Exchange, Nasdaq Capital Market, the NYSE Amex, the New York Stock
Exchange, the Nasdaq Global Market, the Nasdaq Global Select Market or the
OTCQB, whichever is the principal market on which the Common Stock of the
Company is listed. 

          “Register,”
“Registered,” and “Registration” refer to the Registration
effected by preparing and filing one (1) or more Registration Statements in
compliance with the 1933 Act, or pursuant to Rule 415 under the 1933 Act or any
successor rule providing for offering securities on a continuous basis (“Rule
415”), and the declaration or ordering of effectiveness of such
Registration Statement(s) by the United States Securities and Exchange
Commission (the “SEC”). 

          “Registrable
Securities” means (i) the shares of Common Stock issued or issuable
pursuant to the Investment Agreement, (ii) any shares of capital stock issued
or issuable with respect to such shares of Common Stock, if any, as a result of
any stock split, stock dividend, recapitalization, exchange or similar event or
otherwise, which have not been (x) included in the Registration Statement that
has been declared effective by the SEC, or (y) sold under circumstances meeting
all of the applicable conditions of Rule 144 (or any similar provision then in
force) under the 1933 Act.

1

          “Registration
Statement” means the registration statement or statements of the Company
filed under the 1933 Act covering the Registrable Securities. 

          All
capitalized terms used in this Agreement and not otherwise defined herein shall
have the same meaning ascribed to them as in the Investment Agreement. 

Section 2. REGISTRATION. 

          (a) Subject
to Section 3(g), the Company shall, within twenty-one (21) days after
the date of this Agreement, file with the SEC the Registration Statement or
Registration Statements (as is necessary) on Form F-1 (or, if such form is
unavailable for such a registration, on such other form as is available for
such registration), covering the resale of all of the Registrable Securities,
which Registration Statement(s) shall state that, in accordance with Rule 416
promulgated under the 1933 Act, such Registration Statement also covers such
indeterminate number of additional shares of Common Stock as may become
issuable upon stock splits, stock dividends or similar transactions. The Company
shall initially register for resale 30,000,000 shares of Common Stock, except
to the extent that the SEC requires the share amount to be reduced as a
condition of effectiveness. 

Section 3. RELATED OBLIGATIONS. 

          At such
time as the Company is obligated to prepare and file the Registration Statement
with the SEC pursuant to Section 2(a), the Company shall have the
following obligations with respect to the Registration Statement: 

          (a) The
Company shall use all commercially reasonable efforts to cause such
Registration Statement relating to the Registrable Securities to become
effective within ninety (90) days after the date that the Registration
Statement is filed and shall keep such Registration Statement effective until
the earlier to occur of the date on which (A) the Investor shall have sold all
the Registrable Securities; or (B) the Company has no right to sell any
additional shares of Common Stock under the Investment Agreement (the “Registration
Period”). The Registration Statement (including any amendments or
supplements thereto and prospectuses contained therein) shall not contain any
untrue statement of a material fact or omit to state a material fact required
to be stated therein, or necessary to make the statements therein, in light of
the circumstances in which they were made, not misleading. The Company shall
use all commercially reasonable efforts to respond to all SEC comments within
ten (10) business days from receipt of such comments by the Company. The
Company shall use all commercially reasonable efforts to cause the Registration
Statement relating to the Registrable Securities to become effective no later
than five (5) business days after notice from the SEC that the Registration
Statement may be declared effective. The Investor agrees to provide all
information which it is required by law to provide to the Company, including
the intended method of disposition of the Registrable Securities, and the
Company’s obligations set forth above shall be conditioned on the receipt of
such information. 

2

          (b) The
Company shall prepare and file with the SEC such amendments (including
post-effective amendments) and supplements to the Registration Statement and
the prospectus used in connection with such Registration Statement, which
prospectus is to be filed pursuant to Rule 424 promulgated under the 1933 Act,
as may be necessary to keep such Registration Statement effective during the
Registration Period, and, during such period, comply with the provisions of the
1933 Act with respect to the disposition of all Registrable Securities of the
Company covered by such Registration Statement until such time as all of such
Registrable Securities shall have been disposed of in accordance with the
intended methods of disposition by the Investor thereof as set forth in such
Registration Statement. In the event the number of shares of Common Stock
covered by the Registration Statement filed pursuant to this Agreement is at
any time insufficient to cover all of the Registrable Securities, the Company
shall amend such Registration Statement, or file a new Registration Statement
(on the short form available therefor, if applicable), or both, so as to cover
all of the Registrable Securities, in each case, as soon as practicable, but in
any event within fifty (50) calendar days after the necessity therefor arises
(based on the then Purchase Price of the Common Stock and other relevant
factors on which the Company reasonably elects to rely), assuming the Company
has sufficient authorized shares at that time, and if it does not, within fifty
(50) calendar days after such shares are authorized. The Company shall use
commercially reasonable efforts to cause such amendment and/or new Registration
Statement to become effective as soon as practicable following the filing
thereof. 

          (c) The
Company shall make available to the Investor whose Registrable Securities are
included in any Registration Statement and its legal counsel without charge (i)
if requested by the Investor, promptly after the same is prepared and filed
with the SEC at least one (1) copy of such Registration Statement and any
amendment(s) thereto, including financial statements and schedules, all
documents incorporated therein by reference and all exhibits, the prospectus included
in such Registration Statement (including each preliminary prospectus) and,
with regards to such Registration Statement(s), any correspondence by or on
behalf of the Company to the SEC or the staff of the SEC and any correspondence
from the SEC or the staff of the SEC to the Company or its representatives; and
(ii) upon the effectiveness of any Registration Statement, the Company shall
make available copies of the prospectus, via EDGAR, included in such
Registration Statement and all amendments and supplements thereto. 

          (d) The
Company shall use commercially reasonable efforts to (i) register and qualify
the Registrable Securities covered by the Registration Statement under such
other securities or “blue sky” laws of such states in the United States as the
Investor reasonably requests ; (ii) prepare and file in those jurisdictions,
such amendments (including post-effective amendments) and supplements to such
registrations and qualifications as may be necessary to maintain the
effectiveness thereof during the Registration Period; (iii) take such other
actions as may be necessary to maintain such registrations and qualifications
in effect at all times during the Registration Period, and (iv) take all other
actions reasonably necessary or advisable to qualify the Registrable Securities
for sale in such jurisdictions; provided, however, that the Company shall not
be required in connection therewith or as a condition thereto to (x) qualify to
do business in any jurisdiction where it would not otherwise be required to
qualify but for this Section 3(d), or (y) subject itself to general
taxation in any such jurisdiction. The Company shall promptly notify the
Investor who holds Registrable Securities of the receipt by the Company of any
notification with respect to the suspension of the registration or
qualification of any of the Registrable Securities for sale under the
securities or “blue sky” laws of any jurisdiction in the United States or its
receipt of actual notice of the initiation or threatening of any proceeding for
such purpose. 

3

          (e) As
promptly as practicable after becoming aware of such event, the Company shall
notify the Investor in writing of the happening 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 omission 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 (“Registration
Default”) and use all diligent efforts to promptly prepare a supplement or
amendment to such Registration Statement and take any other necessary steps to
cure the Registration Default (which, if such Registration Statement is on Form
S-3, may consist of a document to be filed by the Company with the SEC pursuant
to Section 13(a), 13(c), 14 or 15(d) of the 1934 Act (as defined below) and to
be incorporated by reference in the prospectus) to correct such untrue
statement or omission, and make available copies of such supplement or
amendment to the Investor. The Company shall also promptly notify the Investor
(i) when a prospectus or any prospectus supplement or post-effective amendment
has been filed, and when the Registration Statement or any post-effective
amendment has become effective; (ii) of any request by the SEC for amendments
or supplements to the Registration Statement or related prospectus or related
information, (iii) of the Company’s reasonable determination that a post-effective
amendment to the Registration Statement would be appropriate, (iv) in the event
the Registration Statement is no longer effective, or (v) if the Registration
Statement is stale as a result of the Company’s failure to timely file its
financials or otherwise. If a Registration Default occurs during the period
commencing on the Put Notice Date and ending on the Closing Date, the Company
acknowledges that its failure to cure such a Registration Default within ten
(10) business days will cause the Investor to suffer damages in an amount that
will be difficult to ascertain. 

          (f) The
Company shall use all commercially reasonable efforts to prevent the issuance
of any stop order or other suspension of effectiveness of the Registration
Statement, or the suspension of the qualification of any of the Registrable
Securities for sale in any jurisdiction and, if such an order or suspension is
issued, to obtain the withdrawal of such order or suspension at the earliest
possible moment and to notify the Investor holding Registrable Securities being
sold of the issuance of such order and the resolution thereof or its receipt of
actual notice of the initiation or threat of any proceeding concerning the
effectiveness of the Registration Statement. 

          (g) The
Company shall permit the Investor and one (1) legal counsel, designated by the
Investor, to review and comment upon the Registration Statement and all
amendments and supplements thereto at least one (1) calendar day prior to their
filing with the SEC. However, any postponement of a filing of a Registration
Statement or any postponement of a request for acceleration or any postponement
of the effective date or effectiveness of a Registration Statement by written
request of the Investor (collectively, the “Investor’s Delay”) shall not
act to trigger any penalty of any kind, or any cash amount due or any in-kind
amount due the Investor from the Company under any and all agreements of any
nature or kind between the Company and the Investor. The event(s) of an
Investor’s Delay shall act to suspend all obligations of any kind or nature of
the Company under any and all agreements of any nature or kind between the
Company and the Investor. 

          (h) The
Company shall hold in confidence and not make any disclosure of information
concerning the Investor unless (i) disclosure of such information is necessary
to comply with securities laws in any jurisdiction to which the Company is
subject, (ii) the disclosure of such information is necessary to avoid or correct
a misstatement or omission in any Registration Statement, (iii) the release of
such information is ordered pursuant to a subpoena or other final,
non-appealable order from a court or governmental body of competent
jurisdiction, (iv) such information has been made generally available to the
public other than by disclosure in violation of this Agreement or any other
agreement, or (v) the Investor has consented to such disclosure. The Company
agrees that it shall, upon learning that disclosure of such information
concerning the Investor is sought in or by a court or governmental body of
competent jurisdiction or through other means, give prompt written notice to
the Investor and allow the Investor, at the Investor’s expense, to undertake
appropriate action to prevent disclosure of, or to obtain a protective order
covering such information.

4

          (i) The
Company shall use all commercially reasonable efforts to maintain designation
and quotation of all the Registrable Securities covered by any Registration
Statement on the Principal Market. The Company shall pay all fees and expenses
in connection with satisfying its obligation under this Section 3(i). 

          (j) The
Company shall provide a transfer agent for all the Registrable Securities not
later than the effective date of the first Registration Statement filed
pursuant hereto. 

          (k) If
requested by the Investor, the Company shall (i) as soon as reasonably
practical incorporate in a prospectus supplement or post-effective amendment
such information as the Investor reasonably determines should be included
therein relating to the sale and distribution of Registrable Securities,
including, without limitation, information with respect to the offering of the
Registrable Securities to be sold in such offering; (ii) make all required
filings of such prospectus supplement or post-effective amendment as soon as
reasonably possible after being notified of the matters to be incorporated in
such prospectus supplement or post-effective amendment; and (iii) supplement or
make amendments to any Registration Statement if reasonably requested by the
Investor. 

          (l) The
Company shall use all commercially reasonable efforts to cause the Registrable
Securities covered by the applicable Registration Statement to be registered
with or approved by such other governmental agencies or authorities as may be
necessary to facilitate the disposition of such Registrable Securities. 

          (m) The
Company shall otherwise use all commercially reasonable efforts to comply with
all applicable rules and regulations of the SEC in connection with any
registration hereunder. 

          (n) Within
one (1) business day after the Registration Statement which includes
Registrable Securities is declared effective by the SEC, the Company shall
deliver to the transfer agent for such Registrable Securities, with copies to
the Investor, a written notification that such Registration Statement has been
declared effective by the SEC. 

Section 4. OBLIGATIONS OF THE INVESTOR.

          (a) At
least five (5) calendar days prior to the first anticipated filing date of the
Registration Statement the Company shall notify the Investor in writing of the
information the Company requires from the Investor for the Registration
Statement. It shall be a condition precedent to the obligations of the Company
to complete the registration pursuant to this Agreement with respect to the
Registrable Securities and the Investor agrees to furnish to the Company that
information regarding itself, the Registrable Securities and the intended
method of disposition of the Registrable Securities as shall reasonably be
required to effect the registration of the resale of such Registrable
Securities and the Investor shall execute such documents in connection with
such registration as the Company may reasonably request. The Investor covenants
and agrees that, in connection with any sale of Registrable Securities by it
pursuant to the Registration Statement, it shall comply with the “Plan of
Distribution” section of the then current prospectus relating to such
Registration Statement. 

5

          (b) The
Investor, by its acceptance of the Registrable Securities, agrees to cooperate
with the Company as reasonably requested by the Company in connection with the
preparation and filing of any Registration Statement hereunder. 

          (c) The
Investor agrees that, upon receipt of written notice from the Company of the
happening of any event of the kind described in Section 3(f) or the
first sentence of Section 3(e), the Investor will immediately
discontinue disposition of Registrable Securities pursuant to any Registration
Statement(s) covering the resale of such Registrable Securities until the
Investor’s receipt of the copies of the supplemented or amended prospectus
contemplated by Section 3(f) or the first sentence of Section 3(e).

Section 5. EXPENSES OF REGISTRATION. 

          Each party
shall pay the fees and expenses of its advisers, counsel, the accountants and
other experts, if any, and all other expenses incurred by such party incident
to the negotiation, preparation, execution, delivery and performance of this
Agreement. All reasonable expenses, other than underwriting discounts and
commissions and other than as set forth in the Investment Agreement or herein,
incurred in connection with registrations including comments, filings or
qualifications pursuant to Section 2 and Section 3, including,
without limitation, all registration, listing and qualifications fees, printing
and accounting fees, and fees and disbursements of counsel for the Company
shall be paid by the Company. 

Section 6. INDEMNIFICATION. 

          In the
event any Registrable Securities are included in the Registration Statement
under this Agreement: 

          (a) To the
fullest extent permitted by law, the Company, under this Agreement, will, and
hereby does, indemnify, hold harmless and defend the Investor, the directors,
officers, partners, employees, counsel, agents, representatives of, and each
Person, if any, who controls, the Investor within the meaning of the 1933 Act
or the Securities Exchange Act of 1934, as amended (the “1934 Act”)
(each, an “Indemnified Person”), against any losses, claims, damages,
liabilities, judgments, fines, penalties, charges, costs, attorneys’ fees,
amounts paid in settlement or expenses, joint or several (collectively, “Claims”),
incurred in investigating, preparing or defending any action, claim, suit,
inquiry, proceeding, investigation or appeal taken from the foregoing by or
before any court or governmental, administrative or other regulatory agency,
body or the SEC, whether or not an indemnified party is or may be a party
thereto (“Indemnified Damages”), to which any of them may become subject
insofar as such Claims (or actions or proceedings, whether commenced or
threatened, in respect thereof) arise out of or are based upon: (i) any untrue
statement or alleged untrue statement of a material fact in the Registration
Statement or any post-effective amendment thereto or in any filing made in
connection with the qualification of the offering under the securities or other
“blue sky” laws of any jurisdiction in which the Investor has requested in
writing that the Company register or qualify the Shares (“Blue Sky Filing”),
or the omission or alleged omission to state a material fact required to be
stated therein or necessary to make the statements therein, in light of the
circumstances under which the statements therein were made, not misleading,
(ii) any untrue statement or alleged untrue statement of a material fact
contained in the final prospectus for the offer of the Registrable Securities
(as amended or supplemented, if the Company files any amendment thereof or
supplement thereto with the SEC) or the omission or alleged omission to state
therein any material fact necessary to make the statements made therein, in
light of the circumstances under which the statements therein were made, not
misleading, or (iii) any violation or alleged violation by the Company of the 1933 Act, the 1934
Act, any other law, including, without limitation, any state securities law, or
any rule or regulation thereunder relating to the offer or sale of the
Registrable Securities pursuant to the Registration Statement (the matters in
the foregoing clauses (i) through (iii) being, collectively, “Violations”).
Subject to the restrictions set forth in Section 6(c) the Company shall
reimburse each Indemnified Person, promptly as such expenses are incurred and
are due and payable, for any reasonable legal fees or other reasonable expenses
incurred by them in connection with investigating or defending any such Claim.

6

Notwithstanding anything to the contrary contained herein, the indemnification
agreement contained in this Section 6(a): (i) shall not apply to a Claim
arising out of or based upon a Violation which is due to the inclusion in the
Registration Statement of the information furnished to the Company by any
Indemnified Person expressly for use in connection with the preparation of the
Registration Statement or any such amendment thereof or supplement thereto;
(ii) shall not be available to the extent such Claim is based on (A) a failure
of the Investor to deliver or to cause to be delivered the prospectus made
available by the Company; (B) the Indemnified Person’s use of an incorrect
prospectus despite being promptly advised in advance by the Company in writing
not to use such incorrect prospectus; (C) the manner of sale of the Registrable
Securities by the Investor or of the Investor’s failure to register as a dealer
under applicable securities laws; (D) any omission of the Investor to notify
the Company of any material fact that should be stated in the Registration
Statement or prospectus relating to the Investor or the manner of sale; (E) any
act or omission of the Investor constituting a “disqualifying event” as defined
under Rule 506(b) through (e) of Regulation D of the 1933 Act as amended and
(F) any amounts paid in settlement of any Claim if such settlement is effected
without the prior written consent of the Company, which consent shall not be
unreasonably withheld. Such indemnity shall remain in full force and effect
regardless of any investigation made by or on behalf of the Indemnified Person
and shall survive the resale of the Registrable Securities by the Investor
pursuant to the Registration Statement and shall not be available to the extent
the Claim arises out of the gross negligence or willful misconduct of the
Indemnified Person. 

          (b) In
connection with any Registration Statement in which the Investor is participating,
the Investor agrees to severally and jointly indemnify, hold harmless and
defend, to the same extent and in the same manner as is set forth in Section
6(a), the Company, each of its directors, officers, employees, counsel,
agents and representatives and each Person, if any, who controls the Company
within the meaning of the 1933 Act or the 1934 Act (each, an “Indemnified
Party”), against any Claim or Indemnified Damages to which any of them may
become subject, under the 1933 Act, the 1934 Act or otherwise, insofar as such
Claim or Indemnified Damages arise out of or are based upon any Violation, in
each case to the extent, and only to the extent, that such Violation is due to
(i) the inclusion in the Registration Statement of the written information
furnished to the Company by the Investor expressly for use in connection with
such Registration Statement; (ii) a failure of the Investor to deliver or to
cause to be delivered the prospectus made available by the Company or the
Investor’s use of an incorrect prospectus despite being timely advised by the
Company in writing not to use such incorrect prospectus; (iii) the Investor’s
failure to register as a dealer under applicable securities laws; (iv) the
Investor’s gross negligence or willful misconduct; or (v) any omission of the
Investor to notify the Company of any material fact that should be stated in
the Registration Statement or prospectus relating to the Investor or the manner
of sale; and, subject to Section 6(c), the Investor will reimburse any
legal or other expenses reasonably incurred by them in connection with
investigating or defending any such Claim; provided, however, that the
indemnity agreement contained in this Section 6(b) and the agreement
with respect to contribution contained in Section 7 shall not apply to
amounts paid in settlement of any Claim if such settlement is effected without
the prior written consent of the Investor, which consent shall not be
unreasonably withheld. Such indemnity shall remain in full force and effect
regardless of any investigation made by or on behalf of such Indemnified Party
and shall survive the resale of the Registrable Securities by the Investor
pursuant to the Registration Statement.

7

          (c) Promptly after receipt by an Indemnified Person or Indemnified Party under this
Section 6 of notice of the commencement of any action or proceeding
(including any governmental action or proceeding) involving a Claim, such
Indemnified Person or Indemnified Party shall, if a Claim in respect thereof is
to be made against any indemnifying party under this Section 6, deliver
to the indemnifying party a written notice of the commencement thereof, and the
indemnifying party shall have the right to participate in, and, to the extent
the indemnifying party so desires, jointly with any other indemnifying party
similarly noticed, to assume control of the defense thereof with counsel
mutually satisfactory to the indemnifying party and the Indemnified Person or
the Indemnified Party, as the case may be; provided, however, that an
Indemnified Person or Indemnified Party, as the case may be, shall have the
right to retain its own counsel with the fees and expenses to be paid by the
indemnifying party, if, in the reasonable opinion of counsel retained by the
Indemnified Person or Indemnified Party, the representation by counsel of the
Indemnified Person or Indemnified Party and the indemnifying party would be
inappropriate due to actual or potential differing interests between such
Indemnified Person or Indemnified Party and any other party represented by such
counsel in such proceeding. The indemnifying party shall pay for only one (1)
separate legal counsel for the Indemnified Persons or the Indemnified Parties,
as applicable, and such counsel shall be selected by the Investor, if the
Investor is entitled to indemnification hereunder, or the Company, if the
Company is entitled to indemnification hereunder, as applicable. The
Indemnified Party or Indemnified Person shall cooperate fully with the
indemnifying party in connection with any negotiation or defense of any such
action or Claim by the indemnifying party and shall furnish to the indemnifying
party all information reasonably available to the Indemnified Party or
Indemnified Person which relates to such action or Claim. The indemnifying
party shall keep the Indemnified Party or Indemnified Person fully apprised at
all times as to the status of the defense or any settlement negotiations with
respect thereto. No indemnifying party shall be liable for any settlement of any
action, claim or proceeding affected without its written consent; provided,
however, that the indemnifying party shall not unreasonably withhold, delay or
condition its consent. No indemnifying party shall, without the consent of the
Indemnified Party or Indemnified Person, consent to entry of any judgment or
enter into any settlement or other compromise which does not include as an
unconditional term thereof the giving by the claimant or plaintiff to such
Indemnified Party or Indemnified Person of a release from all liability in
respect to such Claim. Following indemnification as provided for hereunder, the
indemnifying party shall be subrogated to all rights of the Indemnified Party
or Indemnified Person with respect to all third parties, firms or corporations
relating to the matter for which indemnification has been made. The failure to
deliver written notice to the indemnifying party within a reasonable time of
the commencement of any such action shall not relieve such indemnifying party
of any liability to the Indemnified Person or Indemnified Party under this Section
6, except to the extent that the indemnifying party is prejudiced in its
ability to defend such action. 

          (d) The
indemnity agreements contained herein shall be in addition to (i) any cause of
action or similar right of the Indemnified Party or Indemnified Person against
the indemnifying party or others, and (ii) any liabilities the indemnifying
party may be subject to pursuant to the law. 

8

Section 7. CONTRIBUTION. 

          To the
extent any indemnification by an indemnifying party is prohibited or limited by
law, the indemnifying party agrees to make the maximum contribution with
respect to any amounts for which it would otherwise be liable under Section
6 to the fullest extent permitted by law; provided, however, that: (i) no
contribution shall be made under circumstances where the maker would not have
been liable for indemnification under the fault standards set forth in Section
6; (ii) no seller of Registrable Securities guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall
be entitled to contribution from any seller of Registrable Securities who was
not guilty of fraudulent misrepresentation; and (iii) contribution by any seller
of Registrable Securities shall be limited in amount to the net amount of
proceeds received by such seller from the sale of such Registrable Securities. 

Section
8. NO ASSIGNMENT OF REGISTRATION RIGHTS. 

          This
Agreement and the rights, agreements or obligations hereunder may not be
assigned, by operation of law, merger or otherwise, and without the prior
written consent of the other party hereto, and any purported assignment by a
party without prior written consent of the other party will be null and void
and not binding on such other party. Subject to the preceding sentence, all of
the terms, agreements, covenants, representations, warranties and conditions of
this Agreement are binding upon, and inure to the benefit of and are
enforceable by, the parties and their respective successors and assigns. 

Section 9. AMENDMENT OF REGISTRATION
RIGHTS. 

          The
provisions of this Agreement may be amended only with the written consent of
the Company and the Investor. 

Section 10. MISCELLANEOUS. 

          (a) Any
notices or other communications required or permitted to be given under the
terms of this Agreement must be in writing and will be deemed to have been
delivered (i) upon receipt, when delivered personally; (ii) upon receipt, when
sent by facsimile or email with the signed document attached in PDF format
(provided a confirmation of transmission is mechanically or electronically
generated and kept on file by the sending party); or (iii) one (1) day after
deposit with a nationally recognized overnight delivery service, in each case
properly addressed to the party to receive the same. The addresses and
facsimile numbers for such communications shall be: 

	
  

 	
  

 
	
  

 	
 If to the
 Company: 

 
	
  

 	
  

 
	
  

 	
 NATCORE
 TECHNOLOGY, INC. 

 
	
  

 	
 189 North
 Water Street 

 
	
  

 	
 Rochester,
 New York, USA 14604 

 
	
  

 	
 Telephone:
 (585) 286-9180 

 
	
  

 	
  

 
	
  

 	
 If to the
 Investor: 

 
	
  

 	
  

 
	
  

 	
 Dutchess
 Opportunity Fund, II, LP

 
	
  

 	
 50
 Commonwealth Ave, Suite 2

 
	
  

 	
 Boston, MA
 02116 

 
	
  

 	
 Telephone:
 (617) 301-4700

 

9

          Each party
shall provide five (5) business days prior notice to the other party of any
change in address, phone number, facsimile number ore-mail address. 

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

          (c) This
Agreement and the Investment Agreement constitute the entire agreement among
the parties hereto with respect to the subject matter hereof and thereof. There
are no restrictions, promises, warranties or undertakings, other than those set
forth or referred to herein and therein. 

          (d) This
Agreement and the Investment Agreement supersede all prior agreements and
understandings among the parties hereto with respect to the subject matter
hereof and thereof. 

          (e) The
headings in this Agreement are for convenience of reference only and shall not
limit or otherwise affect the meaning hereof. Whenever required by the context
of this Agreement, the singular shall include the plural and masculine shall
include the feminine. This Agreement shall not be construed as if it had been
prepared by one of the parties, but rather as if all the parties had prepared
the same. 

          (f) This
Agreement may be executed in two or more identical counterparts, each of which
shall be deemed an original but all of which shall constitute one and the same
agreement. This Agreement, once executed by a party, may be delivered to the
other party hereto by facsimile transmission or by e-mail delivery of a PDF
format of a copy of this Agreement bearing the signature of the party so
delivering this Agreement. 

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

          (h) In case
any provision of this Agreement is held by a court of competent jurisdiction to
be excessive in scope or otherwise invalid or unenforceable, such provision
shall be adjusted rather than voided, if possible, so that it is enforceable to
the maximum extent possible, and the validity and enforceability of the
remaining provisions of this Agreement will not in any way be affected or
impaired thereby. 

Section 11. GOVERNING LAW; DISPUTES
SUBMITTED TO ARBITRATION. 

          All
disputes arising under this agreement shall be governed by and interpreted in
accordance with the laws of the Commonwealth of Massachusetts, without regard
to principles of conflict of laws. The parties to this agreement will submit
all disputes arising under this agreement to arbitration in Boston,
Massachusetts before a single arbitrator of the American Arbitration
Association (“AAA”). The arbitrator shall be selected by application of
the rules of the AAA, or by mutual agreement of the parties, except that such
arbitrator shall be an attorney admitted to practice law in the Commonwealth of
Massachusetts. No party to this agreement will challenge the jurisdiction or
venue provisions as provided in this section. Nothing contained herein shall
prevent the party from obtaining an injunction.

10

SIGNATURE PAGE OF REGISTRATION RIGHTS
AGREEMENT

          Your
signature on this Signature Page evidences your agreement to be bound by the
terms and conditions of the Investment Agreement and the Registration Rights
Agreement as of the date first written above. 

          The
undersigned signatory hereby certifies that he has read and understands the
Registration Rights Agreement, and the representations made by the undersigned
in this Registration Rights Agreement are true and accurate, and agrees to be
bound by its terms. 

	
  

 	
  

 	
  

 
	
  

 	
 DUTCHESS OPPORTUNITY FUND, II, L.P.

 
	
  

 	
  

 
	
  

 	
 By:

 	
 

 
	
  

 	
  

 	 

 
	
  

 	
  

 	
 Douglas H.
 Leighton

 
	
  

 	
  

 	
 Managing
 Member of: 

 
	
  

 	
  

 	
 Dutchess
 Capital Management, II, LLC

 
	
  

 	
  

 	
 General
 Partner to:

 
	
  

 	
  

 	
 Dutchess
 Opportunity Fund, II, LP 

 
	
  

 	
  

 	
  

 
	
  

 	
 NATCORE TECHNOLOGY, INC.

 
	
  

 	
  

 
	
  

 	
 By:

 	
 

 
	
  

 	
  

 	 

 
	
  

 	
  

 	
 Charles R.
 Provini

 
	
  

 	
  

 	
 President
 & CEO 

 

11

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