<SUBMISSION>
<ACCESSION-NUMBER>0001144204-14-000756
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>5
<PERIOD>20131231
<ITEMS>1.01
<ITEMS>2.03
<ITEMS>3.02
<ITEMS>9.01
<FILING-DATE>20140106
<DATE-OF-FILING-DATE-CHANGE>20140106
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>BeesFree, Inc.
<CIK>0001432139
<ASSIGNED-SIC>5190
<IRS-NUMBER>920189305
<STATE-OF-INCORPORATION>NV
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>000-53212
<FILM-NUMBER>14510192
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>2101 VISTA PARKWAY,
<STREET2>SUITE 122
<CITY>WEST PALM BEACH,
<STATE>FL
<ZIP>33411
<PHONE>561 939 4860
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>2101 VISTA PARKWAY,
<STREET2>SUITE 122
<CITY>WEST PALM BEACH,
<STATE>FL
<ZIP>33411
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>BNH INC
<DATE-CHANGED>20080410
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>v364595_8k.htm
<DESCRIPTION>8-K
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
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<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><B>UNITED
STATES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><B>SECURITIES
AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><B>Washington,
D.C. 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><B>FORM
8-K</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">CURRENT
REPORT</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Pursuant to Section&nbsp;13 or 15(d) of
the</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Securities Exchange Act of 1934</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Date of Report: December 31, 2013</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Date of Earliest Event Reported)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><B>BEESFREE,
INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">(Exact
name of Registrant as specified in its charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 33%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Nevada</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(State or other jurisdiction of</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">incorporation or organization)</P></TD>
    <TD STYLE="width: 37%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">000-53212</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Commission File Number)</P></TD>
    <TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 28%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">92-0189305</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">(I.R.S.
Employer</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Identification No.)</P></TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: center">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2101 Vista Parkway, Suite 122</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>West Palm Beach, Florida 33411</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">(Address of principal
executive offices) (Zip Code)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Registrant&rsquo;s telephone number, including
area code: <B>(561) 939-4860</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>____________________________________</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Former name, if changed since last report)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Written communications
pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Soliciting material pursuant
to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Pre-commencement communications
pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Pre-commencement communications
pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item&nbsp;1.01&#9;Entry into a Material Definitive Agreement.
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Pursuant to a Securities Purchase Agreement (the &ldquo;Purchase
Agreement&rdquo;), dated as of December 31, 2013, BeesFree, Inc. (the &ldquo;Company&rdquo;) raised aggregate gross proceeds of
$150,000. The Company entered into the Purchase Agreement with two accredited investors (the &ldquo;Investors&rdquo;) who purchased
from the Company 15% Senior Secured Convertible Notes (the &ldquo;Notes&rdquo;), in the aggregate principal amount of $150,000.
The Notes bear interest at a rate of 15% per annum, compounded quarterly. Principal and accrued interest on the Notes is convertible
into shares of the Company&rsquo;s common stock, par value $0.001 per share (the &ldquo;Common Stock&rdquo;) at a conversion price
of $1.00 per share (the &ldquo;Conversion Shares&rdquo;). Principal and accrued interest on the Note is due and payable twenty-four
(24) months from the date of the Purchase Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The indebtedness evidenced by the Notes is senior to, and has
priority in right of payment over, all indebtedness of Company, other than that held by the holders of the Company&rsquo;s existing
15% Senior Secured Convertible Notes in the principal amount of $735,000, which are on a pari passu basis. The Notes are secured
by a first lien and security interest in all of the assets of the Company and its wholly-owned subsidiary, BeesFree USA, Inc.,
pursuant to the terms of a certain Security Agreement, dated as of December 31, 2013 (the &ldquo;Security Agreement&rdquo;). In
addition, the conversion price may be adjusted to reflect subdivisions or combinations of the Company&rsquo;s Common Stock such
as through stock splits, dividends, distributions and similar adjustments to its capital stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Investors also received Warrants exercisable for a period
of five years from issuance to purchase an aggregate of 450,000 shares of the Company&rsquo;s Common Stock (the &ldquo;Warrant
Shares&rdquo;). The initial exercise price of the Warrants is $1.00 per share, subject to adjustment to reflect subdivisions or
combinations of the Company&rsquo;s Common Stock such as through stock splits, dividends, distributions and similar adjustments
to its capital stock. Furthermore, if the fair market value (as defined in the Warrants) of one share of Common Stock is greater
than the exercise price then in effect, and the Warrant Shares are not subject to an effective registration statement or no current
prospectus is available for the resale of the Warrant Shares at the time of exercise, the Warrant Shares may be exercised, in whole
or in part, on a cashless basis.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Registration Rights</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company also agreed under the Purchase Agreement to, on
one occasion for a two year period beginning 30 days from issuance of the Notes and Warrants, register the Conversion Shares and
Warrant Shares upon the demand of the holders of the majority of the Conversion Shares and Warrant Shares, and the Company also
agreed to indemnify the Investors for losses arising out of or resulting from material breaches of representations, warranties,
agreements and covenants made by the Company in the Purchase Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The foregoing summary of the terms and conditions of the Purchase
Agreement, the Security Agreement, the Notes and Warrants do not purport to be complete and is qualified in its entirety by reference
to the full text of each of the aforementioned documents attached as Exhibits hereto, and which are hereby incorporated herein
by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 63pt; text-indent: -63pt"><B>Item&nbsp;2.03 &#9;Creation
of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The information set forth in Item&nbsp;1.01 hereof is incorporated
herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 3.02. Unregistered Sales of Equity Securities </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">See Item 1.01 of this Current Report on Form 8-K, which Item
is incorporated herein by this reference, for a description of the terms of the Purchase Agreement, the Notes and Warrants, including
the issuance of the securities in connection therewith.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The securities issued above were issued under the exemption
from registration provided by Section&nbsp;4(a)(2) of the Securities Act of 1933, as amended. The securities contain a legend restricting
transferability absent registration or applicable exemption. The Investors received current information about the Company and had
the opportunity to ask questions about the Company. The Investors were each deemed to be an accredited investor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 9.01&nbsp;&nbsp;&nbsp;&#9;Financial Statements and Exhibits:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left">(a)</TD><TD STYLE="text-align: justify">Financial Statements - Not Applicable</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left">(b)</TD><TD STYLE="text-align: justify">Pro-Forma Financial Information - Not Applicable</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left">(c)</TD><TD STYLE="text-align: justify">Shell Company Transactions - Not Applicable</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left">(d)</TD><TD STYLE="text-align: justify">Exhibits:</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left">10.1</TD><TD STYLE="text-align: justify">Form of Securities Purchase Agreement.</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left">10.2</TD><TD STYLE="text-align: justify">Form of Security Agreement.</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left">10.3</TD><TD STYLE="text-align: justify">Form of 15% Senior Secured Convertible Promissory Note.</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left">10.4</TD><TD STYLE="text-align: justify">Form of Warrant.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>BEESFREE, INC.</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P></TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 5%"><FONT STYLE="font-size: 10pt">By:</FONT></TD>
    <TD STYLE="width: 20%"><FONT STYLE="font-size: 10pt"><U>/S/ JOSEPH FASCIGLIONE&#9;&#9;</U></FONT></TD>
    <TD STYLE="width: 25%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Joseph Fasciglione</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Interim Chief Executive Officer &nbsp; </FONT></TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Dated: January 6, 2014</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<TYPE>EX-10.1
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<DESCRIPTION>EXHIBIT 10.1
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<P STYLE="font: small-caps 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>SECURITIES PURCHASE AGREEMENT</B></P>

<P STYLE="font: small-caps 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-variant: small-caps">THIS
SECURITIES PURCHASE AGREEMENT </FONT>(the &ldquo;<U>Agreement</U>&rdquo;) is made as of the 31<SUP>st</SUP> day of December 2013,
by and between BeesFree, Inc., a Nevada corporation (the &ldquo;<U>Company</U>&rdquo;), BeesFree USA, Inc., a Delaware corporation
(&ldquo;<U>BeesFree USA&rdquo;</U>), and the investors listed on the Schedule of Investors attached hereto (each an &ldquo;<U>Investor</U>&rdquo;
and collectively, the &ldquo;<U>Investors</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: small-caps 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">W I T N E S S E T H:</P>

<P STYLE="font: small-caps 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, the Company
desires to offer and sell to the Investors (the &ldquo;<U>Offering</U>&rdquo;), and the Investors desire to purchase from the Company,
(a) 15% senior secured convertible promissory notes in the aggregate principal amount of up to a maximum of $2,000,000 (the &ldquo;<U>Notes</U>&rdquo;),
in the form attached as <U>Exhibit A</U> hereto, and (b) a warrant (the &ldquo;<U>Warrant</U>&rdquo;), in the form attached as
<U>Exhibit B</U> hereto, to purchase up to 6,000,000 shares of the Company&rsquo;s common stock, $0.001 par value per share (the
&ldquo;<U>Common Stock</U>&rdquo;), with an exercise price equal to $1.00 per share; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">NOW, THEREFORE, in
consideration of the mutual covenants and agreements set forth in this Agreement, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties do hereby agree as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1&#9;Purchase and Sale
of Notes and Warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">1.1&#9;<U>Issuance and
Sale of Notes and Warrants</U>. Subject to the terms and conditions of this Agreement, the Investors severally and not jointly
agree to purchase at the Closing (as hereafter defined), and the Company agrees to issue and sell to the Investors at the Closing,
the amount of Notes and the Warrants (sometimes collectively referred to herein as the &ldquo;<U>Securities</U>&rdquo;) set forth
opposite each Investor&rsquo;s name on the Omnibus Signature Page hereto, for an aggregate purchase price of up to a maximum of
Two Million ($2,000,000) Dollars (the &ldquo;<U>Offering Amount</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">1.2&#9;<U>Payment</U>.&nbsp;&nbsp;Each
Investor is enclosing with its delivery of its Omnibus Signature Page hereto a check payable to, or will promptly make a wire transfer
payment to, BeesFree, Inc. in the full amount of the purchase price of the Notes and Warrants being subscribed for (the &ldquo;<U>Purchase
Price</U>&rdquo;).&nbsp;&nbsp;Wire instructions are as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">Bank Name: Bank of America, N.A.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-weight: normal">Acct.
Name: BeesFree, Inc.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-weight: normal">ABA Number:
026009593</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">A/C Number:&#9;<FONT STYLE="background-color: white">483043536352</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">FBO: <U>Investor Name</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-weight: normal"><U>Social
Security Number</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-weight: normal"><U>Address</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">All funds tendered
by Investors will be held in a segregated, non-interest bearing account in the Company&rsquo;s name at Bank of America, N.A. It
is contemplated that the funds will be released at such time (or promptly thereafter) as all conditions to Closing as set forth
in this Agreement have been satisfied (or otherwise waived) and a Closing is consummated. In the event a Closing does not occur,
the Company will refund all subscription funds, without interest accrued thereon or deduction therefrom, and will return the documents
previously delivered to each Investor, and such documents will be terminated and of no force or effect.&nbsp;&nbsp; Each Investor
understands and acknowledges that there is no minimum amount of funds that needs to be raised to effectuate a Closing hereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">1.3&#9;<U>Closing</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(a)&#9;<U>First Closing</U>.
Subject to the terms and conditions set forth in this Agreement, the Company shall issue and sell to each Investor, and each Investor
shall, severally and not jointly, purchase from the Company at the first closing, such principal amount of Notes as set forth on
the signature pages attached hereto (and applicable number of Warrants), which will be reflected opposite such Investor&rsquo;s
name on the Schedule of Investors attached hereto (the &ldquo;<U>First Closing</U>&rdquo;). The date of the First Closing is hereinafter
referred to as the &ldquo;<U>First Closing Date</U>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(b)&#9;<U>Subsequent
Closing(s)</U>. The Company agrees to issue and sell to each Investor listed on the Subsequent Closing Schedule of Investors, and
each Investor agrees, severally and not jointly, to purchase from the Company on such Subsequent Closing Date such principal amount
of Notes as set forth on the signature pages attached hereto (and applicable number of Warrants), which will be reflected opposite
such Investor&rsquo;s name on Schedule of Investors attached hereto (a &ldquo;<U>Subsequent Closing</U>&rdquo;). There may be more
than one Subsequent Closing. The date of any Subsequent Closing is hereinafter referred to as a &ldquo;<U>Subsequent Closing Date</U>&rdquo;).
Notwithstanding the foregoing, the maximum principal amount of Notes to be sold at the First Closing and all Subsequent Closings
shall be $2,000,000 and the date upon which the final Note(s) are sold hereunder shall be referred to as the &ldquo;<U>Final Closing
Date</U>&rdquo;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The First Closing and
any applicable Subsequent Closings are each referred to in this Agreement as a &ldquo;<U>Closing</U>.&rdquo; The First Closing
Date, any Subsequent Closing Dates and the Final Closing Date are sometimes referred to herein as a &ldquo;<U>Closing Date</U>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(c)&#9;<U>Closing Location</U>.
All Closings shall occur on or prior to January 31, 2014, which date may be extended by the Company in its sole discretion, at
the offices of the Company, 2101 Vista Parkway, Suite 122, West Palm Beach, Florida 334111 or remotely via the exchange of documents
and signatures.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(d)&#9;At the Closing,
the Company shall deliver the Notes and the Warrants to the Investors against payment of the Purchase Price to the Company as described
above, along with delivery by the Investors of an Accredited Investor Certification and Investor Profile to the Company provided
to Investors separately.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(e)&#9;The Closing
is expressly conditioned upon the Company, BeesFree USA and the Investors having entered into the Security Agreement in the form
attached hereto as <U>Exhibit C</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">1.4&#9;<U>Additional
Definitions</U>. For purposes of this Agreement, certain capitalized terms are defined under <U>Appendix A</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">2&#9;<U>Representations
and Warranties of the Company</U>. The Company hereby represents and warrants to the Investors, except as set forth on any Schedule
attached hereto, the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">2.1&#9;<U>Due Incorporation</U>.
The Company and each Subsidiary is a corporation duly incorporated, validly existing and in good standing under the laws of the
jurisdiction of its incorporation, with all requisite corporate power to own its properties and to carry on its business as presently
conducted. The Company is duly qualified as a foreign corporation to do business and is in good standing in each jurisdiction where
the nature of the business conducted or property owned by it makes such qualification necessary, other than those jurisdictions
in which the failure to so qualify would not have a Material Adverse Effect (as defined herein). For purposes of this Agreement,
a &ldquo;<B>Material Adverse Effect</B>&rdquo; shall mean a material adverse effect on the financial condition, results of operations,
prospects, properties or business of the Company and its Subsidiaries taken as a whole. As of the Closing Date, all of the Company&rsquo;s
Subsidiaries and the Company&rsquo;s other ownership interests therein are set forth on <B><U>Schedule 2.1</U></B>. The Company
represents that it owns all of the equity of the Subsidiaries and rights to receive equity of the Subsidiaries set forth on <B><U>Schedule
2.1</U></B>, free and clear of all liens, encumbrances and claims, except as set forth on <B><U>Schedule 2.1</U></B>. No person
or entity other than the Company has the right to receive any equity interest in the Subsidiaries. Other than as set forth on <B><U>Schedule
2.1</U></B>, the Company further represents that neither the Company nor the Subsidiaries have been known by any other names for
the five (5) years preceding the date of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">2.2&#9;<U>Outstanding
Stock</U>. All issued and outstanding shares of capital stock and equity interests in the Company have been duly authorized and
validly issued and are fully paid and non-assessable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">2.3&#9;<U>Authority;
Enforceability</U>. This Agreement, the Notes, Warrants, Security Agreement and any other agreements delivered or required to be
delivered together with or pursuant to this Agreement or in connection herewith (collectively, the &ldquo;<U>Transaction Documents</U>&rdquo;)
have been duly authorized, executed and delivered by the Company and/or the Subsidiaries, as the case may be, and are valid and
binding agreements of the Company and/or the Subsidiaries, as the case may be, enforceable in accordance with their terms, subject
to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to
or affecting creditors&rsquo; rights generally and to general principles of equity. The Company and/or the Subsidiaries, as the
case may be, have full corporate power and authority necessary to enter into and deliver the Transaction Documents and to perform
their obligations thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">2.4&#9;<U>Capitalization
and Additional Issuances</U>. The authorized and outstanding capital stock of the Company and the Subsidiaries on a fully diluted
basis and all outstanding rights to acquire or receive, directly or indirectly, any equity of the Company and/or the Subsidiaries
as of the date of this Agreement and the Closing Date (not including the Securities) are set forth on <B><U>Schedule 2.4</U></B>.
Except as set forth on <B><U>Schedule 2.4</U></B>, there are no options, warrants or rights to subscribe to securities, rights,
understandings or obligations convertible into or exchangeable for or granting any right to subscribe for any shares of capital
stock or other equity interest of the Company or any of the Subsidiaries. Except as set forth on <B><U>Schedule 2.4</U></B>, there
are no outstanding agreements or preemptive or similar rights affecting the Company&rsquo;s Common Stock or equity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">2.5&#9;<U>Consents</U>.
No consent, approval, authorization or order of any court, governmental agency or body or arbitrator having jurisdiction over the
Company, the Subsidiaries or any of their Affiliates, any Principal Market or the Company&rsquo;s stockholders is required for
the execution by the Company of the Transaction Documents and compliance and performance by the Company and the Subsidiaries of
their respective obligations under the Transaction Documents, including, without limitation, the issuance and sale of the Securities,
other than (i) the filings required pursuant to this Agreement, and (ii) the filing of Form D with the Commission and such filings
as are required to be made under applicable state securities laws. The Transaction Documents and the Company&rsquo;s performance
of its obligations thereunder have been unanimously approved by the Company&rsquo;s board of directors in accordance with the Company&rsquo;s
articles of incorporation and applicable law. Any such qualifications and filings will, in the case of qualifications, be effective
upon Closing, and will, in the case of filings, be made within the time prescribed by law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">2.6&#9;<U>No Violation
or Conflict</U>. Conditioned upon the representations and warranties of Investors in Section 3 hereof being materially true and
correct, neither the issuance nor the sale of the Securities nor the performance of the Company&rsquo;s obligations under this
Agreement and the other Transaction Documents by the Company, will:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(a)&#9;violate, conflict
with, result in a breach of, or constitute a default (or an event which with the giving of notice or the lapse of time or both
would be reasonably likely to constitute a default) under (A) the articles of incorporation or bylaws of the Company, (B) to the
Company&rsquo;s knowledge, any decree, judgment, order, law, treaty, rule, regulation or determination applicable to the Company
of any court, governmental agency or body, or arbitrator having jurisdiction over the Company or over the properties or assets
of the Company or any of its Affiliates, (C) the terms of any bond, debenture, note or any other evidence of indebtedness, or any
agreement, stock option or other similar plan, indenture, lease, mortgage, deed of trust or other instrument to which the Company
or any of its Affiliates is a party, by which the Company or any of its Affiliates is bound, or to which any of the properties
of the Company or any of its Affiliates is subject or (D) the terms of any &ldquo;lock-up&rdquo; or similar provision of any underwriting
or similar agreement to which the Company, or any of its Affiliates is a party, except the violation, conflict, breach or default
of which would not have a Material Adverse Effect; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(b)&#9;result in the
creation or imposition of any lien, charge or encumbrance upon the Securities or any of the assets of the Company or any of its
Affiliates, except in favor of each Investor as described herein; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(c)&#9;except as set
forth in <B><U>Schedule 2.6</U></B> hereto, result in the activation of any rights of first refusal, participation rights, preemptive
rights, anti-dilution rights or a reset or repricing of any debt, equity or security instrument of any creditor or equity holder
of the Company, or the holder of the right to receive any debt, equity or security instrument of the Company, nor result in the
acceleration of the due date of any obligation of the Company; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(d)&#9;except as set
forth in <B><U>Schedule 2.6</U></B> hereto, result in the triggering of any piggy-back or other registration rights of any person
or entity holding securities of the Company or having the right to receive securities of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">2.7&#9;<U>The Securities</U>.
The Securities upon issuance:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(a)&#9; are, or will
be, free and clear of any security interests, liens, claims or other encumbrances, subject only to restrictions upon transfer under
the Securities Act and any applicable state securities laws;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(b) have been, or will
be, duly and validly authorized and on the dates of issuance of the Notes and Warrants, the Conversion Shares upon conversion of
the Notes, and the Warrant Shares upon exercise of the Warrants, and such Notes will constitute the valid and binding obligation
of the Company enforceable against the Company in accordance with its terms, except: (i) as limited by general equitable principles
and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of
creditors&rsquo; rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief
or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law,
and the Warrants, Conversion Shares and Warrant Shares will be duly and validly issued, fully paid and non-assessable;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(c)&#9; will not have
been issued or sold in violation of any preemptive or other similar rights of the holders of any securities of the Company or rights
to acquire securities or debt of the Company;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(d) &#9;will not subject
the holders thereof to personal liability by reason of being such holders; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(e)&#9;conditioned
upon the representations and warranties of the Investors as set forth in Section 3 hereof being materially true and correct, will
not result in a violation of Section 5 under the Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">2.8&#9;<U>Litigation</U>.
There is no pending or, to the best knowledge of the Company, threatened action, suit, proceeding or investigation before any court,
governmental agency or body, or arbitrator having jurisdiction over the Company, or any of its Affiliates that would adversely
affect the execution by the Company or the complete and timely performance by the Company of its obligations under the Transaction
Documents. Except as disclosed in the Reports, there is no pending or, to the best knowledge of the Company, basis for or threatened
action, suit, proceeding or investigation before any court, governmental agency or body, or arbitrator having jurisdiction over
the Company, or any of its Affiliates which litigation if adversely determined would have a Material Adverse Effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">2.9&#9;<U>No Market Manipulation</U>.
The Company and its Affiliates have not taken, and will not take, directly or indirectly, any action designed to, or that might
reasonably be expected to, cause or result in stabilization or manipulation of the price of the Common Stock to facilitate the
sale or resale of the Securities or affect the price at which the Securities may be issued or resold.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">2.10&#9;<U>Information
Concerning Company</U>. As of the date of this Agreement and the Closing Date, the Reports and Other Written Information contain
and will contain all material information relating to the Company and its operations and financial condition as of their respective
dates which information is required to be disclosed therein. Since December 31, 2012, and except as disclosed in the Reports or
modified in the Reports and Other Written Information or in the Schedules hereto, there has been no Material Adverse Effect relating
to the Company&rsquo;s business, financial condition or affairs. The Reports and Other Written Information including the financial
statements included therein do 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, taken as a whole, not misleading in light of the circumstances and
when made.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">2.11&#9;<U>Defaults</U>.
The Company is not in material violation of its articles of incorporation or bylaws. The Company is (i) not in default under or
in violation of any other material agreement or instrument to which it is a party or by which it or any of its properties are bound
or affected, which default or violation would have a Material Adverse Effect, (ii) not in default with respect to any order of
any court, arbitrator or governmental body or subject to or party to any order of any court or governmental authority arising out
of any action, suit or proceeding under any statute or other law respecting antitrust, monopoly, restraint of trade, unfair competition
or similar matters which default would have a Material Adverse Effect, or (iii) not in violation of any statute, rule or regulation
of any governmental authority which violation would have a Material Adverse Effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">2.12&#9;<U>No Integrated
Offering</U>. Neither the Company, nor any of its Affiliates, nor any person acting on its or their behalf, has directly or indirectly
made any offers or sales of any security of the Company nor solicited any offers to buy any security of the Company under circumstances
that would cause the offer of the Securities pursuant to this Agreement to be integrated with prior offerings by the Company for
purposes of the Securities Act or any applicable stockholder approval provisions, including, without limitation, under the rules
and regulations of the OTC Market. No prior offering will impair the exemptions relied upon in this Offering or the Company&rsquo;s
ability to timely comply with its obligations hereunder. Neither the Company nor any of its Affiliates will take any action or
suffer any inaction or conduct any offering other than the transactions contemplated hereby that may be integrated with the offer
or issuance of the Securities or that would impair the exemptions relied upon in this Offering or the Company&rsquo;s ability to
timely comply with its obligations hereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">2.13&#9;<U>No General
Solicitation</U>. Neither the Company, nor any of its Affiliates, nor to its knowledge, any person acting on its or their behalf,
has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D under the Securities
Act) in connection with the offer or sale of the Securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">2.14&#9;<U>No Undisclosed
Liabilities</U>. The Company has no liabilities or obligations which are material, individually or in the aggregate, other than
those incurred in the ordinary course of the Company&rsquo;s business since December 31, 2012, and which, individually or in the
aggregate, would reasonably be expected to have a Material Adverse Effect, except as disclosed in the Reports or in <B><U>Schedule
2.14</U></B>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">2.15&#9;<U>No Undisclosed
Events or Circumstances</U>. Since December 31, 2012, except as disclosed in the Reports, no event or circumstance has occurred
or exists with respect to the Company or its businesses, properties, operations or financial condition, that, under applicable
law, rule or regulation, requires public disclosure or announcement prior to the date hereof by the Company but which has not been
so publicly announced or disclosed in the Reports.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">2.16&#9;<U>Dilution</U>.
The Company&rsquo;s executive officers and directors understand the nature of the Securities being sold hereby and recognize that
the issuance of the Securities will have a potential dilutive effect on the equity holdings of other holders of the Company&rsquo;s
equity or rights to receive equity of the Company. The board of directors of the Company has concluded, in its good faith business
judgment, that the issuance of the Securities is in the best interests of the Company. The Company specifically acknowledges that
its obligation to issue the Conversion Shares upon conversion of the Notes and the Warrant Shares upon exercise of the Warrants
is binding upon the Company and enforceable regardless of the dilution such issuance may have on the ownership interests of other
stockholders of the Company or parties entitled to receive equity of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">2.17&#9;<U>No Disagreements
with Accountants and Lawyers</U>. There are no material disagreements of any kind presently existing, or reasonably anticipated
by the Company to arise, between the Company and the accountants and lawyers previously and presently employed by the Company,
including, but not limited to, disputes or conflicts over payment owed to such accountants and lawyers, nor have there been any
such disagreements during the two years prior to the Closing Date,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">2.18&#9;<U>Investment
Company</U>. Neither the Company nor any Affiliate of the Company is an &ldquo;investment company&rdquo; within the meaning of
the Investment Company Act of 1940, as amended.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">2.19&#9;<U>Certain Fees</U>.
Other than as set forth on <B><U>Schedule 2.19</U></B> hereto, the Company represents that to the best of its knowledge, there
are no parties entitled to receive fees, commissions, finder&rsquo;s fees, due diligence fees or similar payments in connection
with the Offering. The Investors shall have no obligation with respect to any fees or with respect to any claims made by or on
behalf of other persons for fees of a type contemplated in this Section that may be due in connection with the transactions contemplated
by the Transaction Documents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">2.20&#9;<U>Foreign Corrupt
Practices</U>. Neither the Company, nor to the knowledge of the Company, any Subsidiary, any agent or other person acting on behalf
of the Company or any Subsidiary, has (i) directly or indirectly, used any funds for unlawful contributions, gifts, entertainment
or other unlawful expenses related to foreign or domestic political activity, (ii) made any unlawful payment to foreign or domestic
government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed
to disclose fully any contribution made by the Company (or made by any person acting on its behalf of which the Company is aware)
which is in violation of law, or (iv) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977,
as amended.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">2.21&#9;<U>Reporting
Company/Shell Company</U>. The Company is a publicly-held company subject to reporting obligations pursuant to Section 13 of the
Exchange Act and has a class of Common Stock registered pursuant to Section 12(g) of the Exchange Act. Pursuant to the provisions
of the Exchange Act, the Company has timely filed all reports and other materials required to be filed thereunder with the Commission
during the preceding twelve months. As of the Closing Date, the Company is not a &ldquo;shell company&rdquo; but is a &ldquo;former
shell company&rdquo; as those terms are employed in Rule 144 under the Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">2.22&#9;<U>Listing</U>.
The Company&rsquo;s Common Stock is quoted on the over-the-counter market maintained by the OTC Markets Group, Inc. (the &ldquo;<U>OTC
Market</U>&rdquo;) under the symbol &ldquo;BEES&rdquo;. The Company has not received any pending oral or written notice that its
Common Stock is not eligible nor will become ineligible for quotation on the OTC Market nor that its Common Stock does not meet
all requirements for the continuation of such quotation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">2.23&#9;<U>DTC Status</U>.
The Company&rsquo;s transfer agent is a participant in, and the Common Stock shall be eligible for transfer pursuant to, the Depository
Trust Company Automated Securities Transfer Program. The name, address, telephone number, fax number, contact person and email
address of the Company transfer agent is set forth on <B><U>Schedule 2.23</U></B> hereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">2.24&#9;<U>Company Predecessor
and Subsidiaries</U>. The Company makes each of the representations contained in Sections 2.1, 2.2, 2.3, 2.5, 2.6, 2.8, 2.10, 2.11,
2.14, 2.15, 2.17, 2.18 and 2.20 of this Agreement, as same relate or could be applicable to each Subsidiary. All representations
made by or relating to the Company of a historical or prospective nature and all undertakings described in Section 9 shall relate,
apply and refer to the Company and the Subsidiaries and their predecessors and successors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">2.25&#9;<U>Correctness
of Representations</U>. The Company represents that the foregoing representations and warranties are true and correct as of the
date hereof in all material respects, and, unless the Company otherwise notifies the Investors prior to the Closing Date, shall
be true and correct in all material respects as of the Closing Date; <I>provided</I> that if such representation or warranty is
made as of a different date, such representation or warranty shall be true as of such date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">2.26&#9;<U>Survival</U>.
The foregoing representations and warranties shall survive the Closing Date for a period of one year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">3&#9;<U>Representations
and Warranties of the Investors.</U> Each of the Investors, severally and not jointly, hereby represents and warrants that:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">3.1&#9;<U>Authorization</U>.
Investor (i) if a natural person, represents that Investor has reached the age of 21 and has full power and authority to execute
and deliver this Agreement and all other Transaction Documents and to carry out the provisions hereof and thereof; (ii) if a corporation,
partnership, or limited liability company or partnership, or association, joint stock company, trust, unincorporated organization
or other entity, represents that such entity was not formed for the specific purpose of acquiring the Securities, such entity is
duly organized, validly existing and in good standing under the laws of the state of its organization, the consummation of the
transactions contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational
documents, such entity has full power and authority to execute and deliver this Agreement and all other Transaction Documents and
to carry out the provisions hereof and thereof and to purchase and hold the Securities the execution and delivery of this Agreement
has been duly authorized by all necessary action, this Agreement has been duly executed and delivered on behalf of such entity
and is a legal, valid and binding obligation of such entity; or (iii) if executing this Agreement in a representative or fiduciary
capacity, represents that it has full power and authority to execute and deliver this Agreement in such capacity and on behalf
of the subscribing individual, ward, partnership, trust, estate, corporation, or limited liability company or partnership, or other
entity for whom Investor is executing this Agreement, and such individual, partnership, ward, trust, estate, corporation, or limited
liability company or partnership, or other entity has full right and power to perform pursuant to this Agreement and make an investment
in the Company, and represents that this Agreement constitutes a legal, valid and binding obligation of such entity. The execution
and delivery of this Agreement will not violate or be in conflict with any order, judgment, injunction, agreement or controlling
document to which Investor is a party or by which it is bound.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">3.2&#9;<U>Purchase Entirely
for Own Account</U>. The Securities to be purchased by the Investor will be acquired for investment for the Investor&rsquo;s own
account and not with a view to the resale or distribution of any part thereof, and such Investor has no present intention of selling,
granting any participation in, or otherwise distributing the same. Such Investor does not have any contract, undertaking, agreement,
or arrangement with any person to sell, transfer, or grant participation to any person with respect to any of the Securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">3.3&#9;<U>Disclosure
of Information</U>. The Investor acknowledges that it has received all the information that it has requested relating to the Company
and the purchase of the Securities. Such Investor acknowledges that it has been furnished with, either by the Company or through
the EDGAR Website of the Commission, copies of the Company&rsquo;s filings made with the Commission through the tenth (10<SUP>th</SUP>)
business day preceding the Closing Date (hereinafter collectively referred to as the &ldquo;<B>Reports</B>&rdquo;). Such Investor
is not deemed to have any knowledge of any information not included in the Reports or the Transaction Documents, unless such information
is delivered in the manner described in the next sentence. In addition, such Investor may have received in writing from the Company
such other information concerning its operations, financial condition and other matters as such Investor has requested in writing,
identified thereon as OTHER WRITTEN INFORMATION (such other information is collectively, the &ldquo;<B>Other Written Information</B>&rdquo;),
and considered all factors such <FONT STYLE="font-weight: normal; text-underline-style: double; color: Black">Investor</FONT>
deems material in deciding on the advisability of investing in the Securities. In addition to the foregoing, such Investor acknowledges
that it has been afforded: (i) the opportunity to ask such questions as it has deemed necessary of, and to receive answers from,
representatives of the Company concerning the terms and conditions of the offering of the Securities and the merits and risks
of investing in the Securities; (ii) access to information about the Company and its financial condition, results of operations,
business, properties, management and prospects sufficient to enable it to evaluate its investment; and (iii) the opportunity to
obtain such additional information that the Company possesses or can acquire without unreasonable effort or expense that is necessary
to make an informed investment decision with respect to the investment. Neither such inquiries nor any other investigation conducted
by or on behalf of such Investor or its representatives or counsel shall modify, amend or affect such Investor&rsquo;s right to
rely on the truth, accuracy and completeness of the Reports, Other Written Information and the Company&rsquo;s representations
and warranties contained in the Transaction Docum<FONT STYLE="font-size: 10pt">ents.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">3.4&#9;<U>Information
on Investor</U>. Such Investor is, and will be at the time of the conversion of the Notes and exercise of the Warrants, an &ldquo;accredited
investor,&rdquo; as such term is defined in Rule 501 of Regulation D promulgated by the Commission under the Securities Act and
as set forth on the Accredited Investor Certification, is experienced in investments and business matters, has made investments
of a speculative nature and has purchased securities of United States publicly-owned companies in the development stage in private
placements in the past and, with its representatives, if any, has such knowledge and experience in financial, tax and other business
matters as to enable such Investor to utilize the information made available by the Company to evaluate the merits and risks of,
and to make an informed investment decision with respect to, the proposed purchase, which such Investor hereby agrees represents
a speculative investment. Such Investor has the authority and is duly and legally qualified to purchase and own the Securities.
Such Investor is and acknowledges that it is able to fend for itself, able to bear the risk of such investment for an indefinite
period and to afford a complete loss thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">3.5&#9;<U>Restricted
Securities</U>. Such Investor understands that the Securities have not been registered under the Securities Act, are characterized
as &ldquo;Restricted Securities&rdquo; under federal securities laws inasmuch as they are being acquired from the Company in a
transaction not involving a public offering, and such Investor shall not sell, offer to sell, assign, pledge, hypothecate or otherwise
transfer any of the Securities unless pursuant to an effective registration statement under the Securities Act, or unless an exemption
from registration is available. Notwithstanding anything to the contrary contained in this Agreement, such Investor may transfer
(without restriction and without the need for an opinion of counsel) the Securities to its Affiliates, <I>provided</I> that each
such Affiliate is an &ldquo;accredited investor,&rdquo; as such term is defined under Regulation D, and such Affiliate agrees in
writing to be bound by the terms and conditions of this Agreement. For the purposes of this Agreement, an &ldquo;Affiliate&rdquo;
of any person or entity means any other person or entity directly or indirectly controlling, controlled by or under direct or indirect
common control with such person or entity. Without limiting the foregoing, each Subsidiary is an Affiliate of the Company. For
purposes of this definition, &ldquo;control&rdquo; means the power to direct the management and policies of such person, directly
or indirectly, whether through the ownership of voting securities, by contract or otherwise. Other than consummating the transactions
contemplated hereunder, such Investor has not, nor has any person acting on behalf of or pursuant to any understanding with such
Investor, directly or indirectly executed any purchases or sales, including short sales,&nbsp;of the securities of the Company
during the period commencing from the time that such Investor first received a term sheet (written or oral) from the Company or
any other person representing the Company setting forth the material terms of the transactions contemplated hereunder. Other than
to other persons party to this Agreement, such Investor has maintained the confidentiality of all disclosures made to it in connection
with this transaction (including the existence and terms of this transaction). Investor represents that it is familiar with SEC
Rule&nbsp;144, as presently in effect, and understands the resale limitations imposed thereby and by the Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">3.6&#9;<U>High Risk and
Speculative Investment</U>. Investor recognizes that the purchase of the&nbsp;Securities involves a high degree of risk including,
but not limited to, the risk factors set forth on <U>Schedule 3.6</U> and in the Reports and the following: (a) the Company may
require funds in addition to the proceeds of the Offering; (b) an investment in the Company is highly speculative, and only investors
who can afford the loss of their entire investment should consider investing in the Company and the Securities; (c) the Investor
may not be able to liquidate its investment; (d) transferability of the Securities is extremely limited; (e) the Company may issue
additional securities in the future which have rights and preferences that are senior to those of the Securities, Conversion Shares
and Warrant Shares; and (f) that the Common Stock may not successfully become actively traded. Investor has reviewed the Risk Factors
which are set forth in <U>Schedule 3.6</U> hereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">3.7&#9;<U>Use of Proceeds</U>.
Investor acknowledges and understands that the proceeds from the sale of the Securities are expected to be used by the Company
for its general working capital needs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">3.8&#9;<U>General Solicitation</U>.
The offer to sell the Securities was directly communicated to such Investor by the Company. Investor is not purchasing the Securities
as a result of any advertisement, article, notice, or other communication regarding the Securities published in any newspaper,
magazine or similar media or broadcast over television or radio or presented in any seminar or any other general solicitation or
general advertisement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">3.9&#9;<U>Fees</U>. Except
as set forth on <U>Schedule 2.19</U>, no brokerage or finder&rsquo;s fees or commissions are or will be payable by the Company
or &nbsp;any Subsidiary to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other
person with respect to the transactions contemplated by the Transaction Documents. &nbsp;The Investors shall have no obligation
with respect to any fees or with respect to any claims made by or on behalf of other persons for fees of a type contemplated in
this Section that may be due in connection with the transactions contemplated by the Transaction Documents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">3.10&#9;<U>Legends</U>.
It is understood that the certificates evidencing the Securities (and the Conversion Shares and Warrant Shares, respectively) will
bear the following legend:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0pt"></TD><TD STYLE="width: 0pt"></TD><TD STYLE="text-align: justify">&ldquo;THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE &quot;<U>ACT</U>&quot;), AND ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AS SET FORTH IN THIS CERTIFICATE.
THE SECURITIES REPRESENTED HEREBY MAY NOT BE SOLD, TRANSFERRED, OR OTHERWISE DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE ACT OR AN OPINION OF COUNSEL, REASONABLY ACCEPTABLE TO COUNSEL FOR THE COMPANY, TO THE EFFECT THAT THE PROPOSED
SALE, TRANSFER, OR DISPOSITION MAY BE EFFECTUATED WITHOUT REGISTRATION UNDER THE ACT.&rdquo;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">3.11&#9;<U>For ERISA
plans only</U>. The fiduciary of the ERISA plan (the &ldquo;<U>Plan</U>&rdquo;) represents that such fiduciary has been informed
of and understands the Company&rsquo;s investment objectives, policies and strategies, and that the decision to invest &ldquo;plan
assets&rdquo; (as such term is defined in ERISA) in the Company is consistent with the provisions of ERISA that require diversification
of plan assets and impose other fiduciary responsibilities. Investor fiduciary or Plan (a) is responsible for the decision to invest
in the Company; (b) is independent of the Company or any of its affiliates; (c) is qualified to make such investment decision;
and (d) in making such decision, Investor fiduciary or Plan has not relied primarily on any advice or recommendation of the Company
or any of its affiliates</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">3.12&#9;Investor should
check the Office of Foreign Assets Control (&ldquo;<U>OFAC</U>&rdquo;) website at <U>http://www.treas.gov/ofac</U> before making
the following representations. Investor represents that the amounts invested by it in the Company in the Offering were not and
are not directly or indirectly derived from activities that contravene federal, state or international laws and regulations, including
anti-money laundering laws and regulations. Federal regulations and Executive Orders administered by OFAC prohibit, among other
things, the engagement in transactions with, and the provision of services to, certain foreign countries, territories, entities
and individuals. The lists of OFAC prohibited countries, territories, persons and entities can be found on the OFAC website at
<U>http://www.treas.gov/ofac</U>. In addition, the programs administered by OFAC (the &ldquo;<U>OFAC Programs</U>&rdquo;) prohibit
dealing with individuals<FONT STYLE="font: 10pt Times New Roman, Times, Serif"><SUP>[1]</SUP></FONT> or entities in certain countries
regardless of whether such individuals or entities appear on the OFAC lists;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">3.13&#9;To the best of
Investor&rsquo;s knowledge, none of: (1) Investor; (2) any person controlling or controlled by Investor; (3) if Investor is a privately-held
entity, any person having a beneficial interest in Investor; or (4) any person for whom Investor is acting as agent or nominee
in connection with this investment is a country, territory, individual or entity named on an OFAC list, or a person or entity prohibited
under the OFAC Programs. Please be advised that the Company may not accept any amounts from a prospective investor if such prospective
investor cannot make the representation set forth in the preceding paragraph. Investor agrees to promptly notify the Company should
Investor become aware of any change in the information set forth in these representations. Investor understands and acknowledges
that, by law, the Company may be obligated to &ldquo;freeze the account&rdquo; of Investor, either by prohibiting additional subscriptions
from Investor, declining any redemption requests and/or segregating the assets in the account in compliance with governmental regulations,
and the Company may also be required to report such action and to disclose Investor&rsquo;s identity to OFAC. Investor further
acknowledges that the Company may, by written notice to Investor, suspend the redemption rights, if any, of Investor if the Company
reasonably deems it necessary to do so to comply with anti-money laundering regulations applicable to the Company or any of the
Company&rsquo;s other service providers. These individuals include specially designated nationals, specially designated narcotics
traffickers and other parties subject to OFAC sanctions and embargo programs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">3.14&#9;To the best of
Investor&rsquo;s knowledge, none of: (1) Investor; (2) any person controlling or controlled by Investor; (3) if Investor is a privately-held
entity, any person having a beneficial interest in Investor; or (4) any person for whom Investor is acting as agent or nominee
in connection with this investment is a senior foreign political figure,<FONT STYLE="font: 10pt Times New Roman, Times, Serif"><SUP>[2]</SUP></FONT><SUP>
</SUP>or any immediate family<FONT STYLE="font: 10pt Times New Roman, Times, Serif"><SUP>[3]</SUP></FONT> member<SUP> </SUP>or
close associate<FONT STYLE="font: 10pt Times New Roman, Times, Serif"><SUP>[4]</SUP></FONT><SUP> </SUP>of a senior foreign political
figure, as such terms are defined in the footnotes below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><SUP>[1]</SUP> These individuals include
specially designated nationals, specially designated narcotics traffickers and other parties subject to OFAC sanctions and embargo
programs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><SUP>[2]</SUP> A &ldquo;senior foreign
political figure&rdquo; is defined as a senior official in the executive, legislative, administrative, military or judicial branches
of a foreign government (whether elected or not), a senior official of a major foreign political party, or a senior executive of
a foreign government-owned corporation. In addition, a &ldquo;senior foreign political figure&rdquo; includes any corporation,
business or other entity that has been formed by, or for the benefit of, a senior foreign political figure.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><SUP>[3]</SUP> &ldquo;Immediate family&rdquo;
of a senior foreign political figure typically includes the figure&rsquo;s parents, siblings, spouse, children and in-laws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><SUP>[4]</SUP> A &ldquo;close associate&rdquo;
of a senior foreign political figure is a person who is widely and publicly known to maintain an unusually close relationship with
the senior foreign political figure, and includes a person who is in a position to conduct substantial domestic and international
financial transactions on behalf of the senior foreign political figure.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">3.15&#9;If Investor is
affiliated with a non-U.S. banking institution (a &ldquo;<U>Foreign Bank</U>&rdquo;), or if Investor receives deposits from, makes
payments on behalf of, or handles other financial transactions related to a Foreign Bank, Investor represents and warrants to the
Company that: (1) the Foreign Bank has a fixed address, other than solely an electronic address, in a country in which the Foreign
Bank is authorized to conduct banking activities; (2) the Foreign Bank maintains operating records related to its banking activities;
(3) the Foreign Bank is subject to inspection by the banking authority that licensed the Foreign Bank to conduct banking activities;
and (4) the Foreign Bank does not provide banking services to any other Foreign Bank that does not have a physical presence in
any country and that is not a regulated affiliate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">3.16&#9;<U>Correctness
of Representations</U>. Investor represents that the foregoing representations and warranties are true and correct as of the date
hereof and, unless Investor otherwise notifies the Company in writing prior to the Closing Date, shall be true and correct as of
the Closing Date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">3.17&#9;<U>Survival</U>.
The foregoing representations and warranties shall survive the Closing Date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">4&#9;<U>Conditions
of the Investors&rsquo; Obligations at Closing</U>. The obligations of the Investors under subsection&nbsp;1.2 of this Agreement
are subject to the fulfillment on or before each Closing of each of the following conditions:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">4.1&#9;<U>Representations
and Warranties</U>. The representations and warranties of the Company contained in Section&nbsp;2 hereof shall be true on and as
of the Closing with the same effect as though such representations and warranties had been made on and as of the date of such Closing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">4.2&#9;<U>Performance</U>.
The Company shall have performed and complied with all agreements, obligations, and conditions contained in this Agreement that
are required to be performed or complied with by it on or before the Closing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">4.3&#9;<U>Suspension
of Offering</U>. No order suspending or enjoining the Offering or sale of the Notes and Warrants has been issued, and no proceedings
for that purpose or a similar purpose have been initiated or are pending, or, to the best of the Company&rsquo;s knowledge, are
contemplated or threatened.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">4.4&#9;<U>No Material
Adverse Effect</U>. There shall have been no Material Adverse Effect with respect to the Company since the date hereof within ten
(10) business days of a Closing hereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">4.5&#9;<U>Memorandum
of Understanding</U>. The Company shall have entered into the certain Memorandum of Understanding of even date herewith with one
or more of the Investors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">4.6&#9;<U>Delivery of
Notes and Warrants</U>. The Company shall have delivered the Notes and the Warrants to the Investors, as specified in Section&nbsp;1.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">5&#9;<U>Conditions
of the Company&rsquo;s Obligations at Closing</U>. The obligations of the Company to the Investors under this Agreement are subject
to the fulfillment on or before each Closing of each of the following conditions by the Investors:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">5.1&#9;<U>Representations
and Warranties</U>. The representations and warranties of the Investors contained in Section 3 shall be true on and as of such
Closing with the same effect as though such representations and warranties had been made on and as of such Closing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">5.2&#9;<U>Payment of
Purchase Price</U>. The Investors shall have delivered the purchase price specified in Section&nbsp;1.2.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">6&#9;<U>Indemnification</U>.
The Investors, severally and not jointly, agree to indemnify and hold harmless the Company and its officers, directors, employees,
agents, control persons and affiliates from and against all losses, liabilities, claims, damages, costs, fees and expenses whatsoever
(including, but not limited to, any and all expenses incurred in investigating, preparing or defending against any litigation commenced
or threatened) based upon or arising out of any actual or alleged false acknowledgment, representation or warranty, or misrepresentation
or omission to state a material fact, or breach by the Investor of any covenant or agreement made by the Investor herein or in
any other document delivered in connection with this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company agrees
to indemnify and hold harmless the Investors and any of Investors&rsquo; general partners, employees, officers, directors, members,
agents and other representatives from and against all losses, liabilities, claims, damages, costs, fees and expenses whatsoever
(including, but not limited to, any and all expenses incurred in investigating, preparing or defending against any litigation commenced
or threatened) based upon or arising out of any actual or alleged false acknowledgment, representation or warranty, or misrepresentation
or omission to state a material fact, or breach by the Company of any covenant or agreement made by the Company herein or in any
other document delivered in connection with this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">7&#9;<U>Registration
Rights</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">7.1&#9;Company hereby
grants the following registration rights to holders of the Securities:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&#9;(a)&#9;On one occasion,
commencing thirty (30) days after the Final Closing Date, but not later than two years after the Final Closing Date, upon a written
request therefor from any Investor or Investors of more than 50% of the Conversion Shares issued and issuable upon conversion of
the outstanding Notes and outstanding Warrant Shares issued and issuable upon exercise of the outstanding Warrants, the Company
shall prepare and not later than sixty (60) days after such request (&ldquo;Filing Date&rdquo;) file, subject to Section 7.1(d)
hereof, with the Commission a registration statement under the Securities Act registering the Registrable Securities (as defined
below) which are the subject of such request, subject to applicable Commission rules and regulations, for unrestricted public resale
by the holder thereof. For purposes of Sections 7.1(a) and 7.1(b) hereof, the definition of Registrable Securities shall not include
Securities (A) which are registered for resale in an effective registration statement, (B) which are included for registration
in a pending registration statement, (C) which have been issued without further transfer restrictions after a sale or transfer
pursuant to Rule 144 under the Securities Act or (D) which may be resold under Rule 144 without volume limitations. Upon the receipt
of such written request, the Company shall promptly give written notice to all other Investors (as of the date of delivery of such
written notice) of the Registrable Securities that such registration statement is to be filed and shall include in such registration
statement Registrable Securities for which it has received written requests within ten (10) days after the Company gives such written
notice. Such other requesting Investors shall be deemed to have exercised their demand registration right under this Section 7.1(a).
&ldquo;<B>Registrable Securities</B>&rdquo; shall mean all of the Conversion Shares and the Warrant Shares issuable upon complete
conversion of the Notes and exercise of the Warrants issued in the Offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&#9;(b)&#9;If the Company
at any time proposes to register any of its securities under the Securities Act for sale to the public, whether for its own account
or for the account of other security holders or both, except with respect to registration statements on Forms S-4, S-8 or another
form not available for registering the Registrable Securities for sale to the public, <I>provided</I> the Registrable Securities
are not otherwise registered for resale by the Investors pursuant to an effective registration statement, each such time it will
give at least ten (10) days&rsquo; prior written notice to the Investors (as of the date of delivery of such written notice) of
its intention so to do. Upon the written request of any Investor that is received by the Company within ten (10) days after the
giving of any such notice by the Company to register any of the Registrable Securities held by such Investor not previously registered,
the Company will cause such Registrable Securities as to which registration shall have been so requested to be included with the
securities to be covered by the registration statement proposed to be filed by the Company, all to the extent required to permit
the sale or other disposition of the Registrable Securities so registered by such Investor (each, a &ldquo;<B>Seller</B>&rdquo;
and together, the &ldquo;<B>Sellers</B>&rdquo;). In the event that any registration pursuant to this Section 7.1(b) shall be, in
whole or in part, an underwritten public offering of common stock of the Company, the number of shares of Registrable Securities
to be included in such an underwriting may be reduced on a pro rata basis among the Investors so requesting registration by the
managing underwriter if and to the extent that the Company and the underwriter shall reasonably be of the opinion that such inclusion
would adversely affect the marketing of the securities to be sold by the Company therein; <I>provided, however</I>, that the Company
shall notify the Seller in writing of any such reduction. Unless the Investor notifies the Company in writing that it elects to
deem the registration statement filed or to be filed pursuant to this Section 7.1(b) as a registration statement filed or to be
filed pursuant to Section 7.1(a), the Company may withdraw or delay or suffer a delay of any registration statement referred to
in this Section 7.1(b) without thereby incurring any liability to the Sellers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&#9;(c) &#9;If, at the
time any written request for registration is received by the Company pursuant to Section 7.1(a) hereof, the Company has determined
to proceed with the actual preparation and filing of a registration statement under the Securities Act in connection with the proposed
offer and sale for cash of any of its securities for the Company&rsquo;s own account and the Company actually does file such other
registration statement, such written request shall be deemed to have been given pursuant to Section 7.1(b) rather than Section
7.1(a), and the rights of the holders of Registrable Securities covered by such written request shall be governed by Section 7.1(b).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(d) &#9;Notwithstanding
any other provision of this Section 7.1, if due to any SEC Guidance (as defined herein) (a) the Commission does not declare the
Registration Statement effective on or before the period set forth in Section 7.4 hereof, or (b) if the Commission allows the Registration
Statement to be declared effective at any time before or after such date, subject to the withdrawal of certain Registrable Securities
from the Registration Statement, and the reason for (a) or (b) is the Commission&rsquo;s determination that (x) the offering of
any of the Registrable Securities constitutes a primary offering of securities by the Company, (y) Rule 415 of the Securities Act
may not be relied upon for the registration of the resale of any or all of the Registrable Securities, and/or (z) a holder of any
Registrable Securities must be named as an underwriter (and the Company has made a commercially reasonable effort to advocate with
the SEC for the registration of all or a greater number of Registrable Securities), the Investors understand and agree that in
the case of (b) the Company may reduce, on a <I>pro rata</I> basis, subject to the senior registration right of other holders (the
&ldquo;<B>Other Holders</B>&rdquo;), the total number of Registrable Securities to be registered on behalf of each such Investor,
and, in the case of (a) or (b), that an Investor shall not be entitled to any liquidated damages under Section 7.4 hereof with
respect to the Registrable Securities not registered for the reason set forth in (a), or so reduced on a <I>pro rata</I> basis
as set forth in (b). In any such <I>pro</I> rata reduction, the number of Registrable Securities to be registered on such Registration
Statement will first be reduced by the Registrable Securities represented by the Warrant Shares (applied, in the case that some
Warrant Shares may be registered, to the Investors on a pro rata basis based on the total number of unregistered Warrant Shares
held by such Investors on a fully diluted basis), and second by Registrable Securities represented by Conversion Shares (applied,
in the case that some Conversion Shares may be registered, to the Investors on a pro rata basis based on the total number of unregistered
Conversion Shares held by such Investors)<FONT STYLE="font-size: 10pt">. </FONT>The Investors acknowledge and agree the provisions
of this paragraph may apply to more than one Registration Statement. The Company shall file a new registration statement as soon
as reasonably practicable covering the resale by the Investors and Other Holders of not less than the number of such Registrable
Securities that are not registered in the registration statement. For the purpose of this Section 7.1, Investors understand and
acknowledge that the holders of the Company&rsquo;s warrants issued with the Company&rsquo;s Series A Cumulative Convertible Preferred
Stock and holders of the Company&rsquo;s Series B Cumulative Convertible Preferred Stock and warrants issued with the Company&rsquo;s
Series B Cumulative Convertible Preferred Stock shall be considered to have registration rights senior to the Investors and all
shares of common stock underlying such warrants and shares of Series B Cumulative Convertible Preferred Stock shall be considered
Registrable Securities hereunder. &ldquo;<B>SEC Guidance</B>&rdquo; means (i)&nbsp;any publicly-available written guidance, or
rule of general applicability of the SEC staff, or (ii)&nbsp;oral or written comments, requirements or requests of the SEC staff
to the Company in connection with the review of a registration statement, including, but not limited to, such guidance as may effect
a reduction in the number of Registrable Securities that may be registered by the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&#9;&#9;7.2&#9;<U>Registration Procedures</U>.
If and whenever the Company is required by the provisions of Section 7.1 to effect the registration of any Registrable Securities
under the Securities Act, the Company will, as expeditiously as possible:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(a)&#9;subject to the
timelines provided in this Agreement, (i) prepare and file with the Commission a registration statement required by Section 7.1
with respect to such Registrable Securities and use its commercially reasonable efforts to cause such registration statement to
become and remain effective for the period of the distribution contemplated thereby (determined as herein provided), (ii) promptly
provide to the holders of the Registrable Securities copies of all filings and Commission letters of comment and notify the Sellers
(by telecopier and by e-mail addresses provided by the Investors) on or before the second (2<SUP>nd</SUP>) business days thereafter
that the Company receives notice that (A) the Commission has no comments or no further comments on the registration statement,
and (B) the registration statement has been declared effective (failure to timely provide notice as required by this Section 7.2(a)
shall be a material breach of the Company&rsquo;s obligation and an Event of Default as defined in the Notes and a Non-Registration
Event as defined in Section 7.4 of this Agreement);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(b)&#9;prepare and
file with the Commission such amendments and supplements to such registration statement and the prospectus used in connection therewith
as may be necessary to keep such registration statement effective until such registration statement has been effective for a period
of one (1) year, and comply with the provisions of the Securities Act with respect to the disposition of all of the Registrable
Securities covered by such registration statement in accordance with the Sellers&rsquo; intended method of disposition set forth
in such registration statement for such period;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(c)&#9;furnish to the
Sellers, at the Company&rsquo;s expense, such number of copies of the registration statement and the prospectus included therein
(including each preliminary prospectus) as such persons reasonably may request in order to facilitate the public sale or their
disposition of the securities covered by such registration statement, or make them electronically available;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(d)&#9;use its commercially
reasonable efforts to register or qualify the Registrable Securities covered by such registration statement under the securities
or &ldquo;blue sky&rdquo; laws of New York and such jurisdictions as the Sellers shall reasonably request in writing, <I>provided,
however</I>, that the Company shall not for any such purpose be required to qualify generally to transact business as a foreign
corporation in any jurisdiction where it is not so qualified or to consent to general service of process in any such jurisdiction;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(e)&#9;as applicable,
list or make available for quotation the Registrable Securities covered by such registration statement with any securities exchange
or quotation system on which the Common Stock of the Company is then listed or quoted;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(f)&#9;notify the Sellers
within two (2) business days of the happening of any event of which the Company has knowledge as a result of which the prospectus
contained in such registration statement, as then in effect, includes an untrue statement of a material fact or omits to state
a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances
then existing, or which becomes subject to a Commission, state or other governmental order suspending the effectiveness of the
registration statement covering any of the Registrable Securities; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(g)&#9;provide to the
Sellers copies of the registration statement and amendments thereto at least two (2) days prior to the filing thereof with the
Commission. A Seller&rsquo;s failure to comment on any registration statement or other document provided to an Investor or its
counsel shall be construed to constitute approval thereof nor the accuracy thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">7.3.&#9;<U>Provision
of Documents</U>. In connection with each registration described in this Section 7, each Seller will furnish to the Company in
writing such information and representation letters with respect to itself and the proposed distribution by it as reasonably shall
be necessary in order to assure compliance with federal and applicable state securities laws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">7.4.&#9;<U>Non-Registration
Events</U>. The Company agrees that the Sellers will suffer damages if any registration statement required under Section 7.1(a)
or 7.1(b) is not filed within sixty (60) days after written request and declared effective by the Commission within one hundred
eighty (180) days after such request, and maintained in the manner and within the time periods contemplated by Section 7, and it
would not be feasible to ascertain the extent of such damages with precision. Accordingly, if (A) if the registration statement
described in Section 7.1(a) or 7.1(b) is not filed within sixty (60) days after such written request, or is not declared effective
within one hundred eighty (180) days after such written request, or (B) any registration statement described in Sections 7.1(a)
or 7.1(b) is filed and declared effective but shall thereafter cease to be effective without being succeeded within thirty (30)
business days by an effective replacement or amended registration statement or for a period of time which shall exceed sixty (60)
days in the aggregate per year (defined as every rolling period of 365 consecutive days commencing on the actual effective date
of such registration statement) (each such event referred to in clauses A and B of this Section 7.4 is referred to herein as a
&ldquo;<B>Non-Registration Event</B>&rdquo;), then the Company shall pay to the holder of Registrable Securities, as &ldquo;<B>Liquidated
Damages</B>&rdquo;, an amount equal to one percent (1%) for each thirty (30) days (or such lesser pro-rata amount for any period
of less than thirty (30) days) of the (i) purchase price of the outstanding Notes and (ii) purchase price of the Conversion Shares
and Warrant Shares issued upon conversion of Notes and exercise of Warrants held by Investors which are subject to such Non-Registration
Event; <U>provided</U>, <U>however</U>, that the Company shall not be required to pay any Liquidated Damages to any Investor pursuant
to this Section 7.4 in excess of four percent (4%) of a Investor&rsquo;s aggregate Purchase Price hereunder. The Company must pay
the Liquidated Damages in cash. The Liquidated Damages must be paid within ten (10) business days after the end of each thirty
(30) day period or shorter part thereof for which Liquidated Damages are payable. In the event a registration statement but is
withdrawn prior to being declared effective by the Commission, then such Registration Statement will be deemed to have not been
filed and Liquidated Damages will be calculated accordingly. Liquidated Damages shall not be payable pursuant to this Section 7.4
in connection with Registrable Securities for such times as such Registrable Securities may be sold by the holder thereof without
volume limitations or other restrictions pursuant to Section 144(b)(1)(i) of the Securities Act. The Company may require, from
time to time, information from a holder of the Securities that is necessary to complete the registration statement in accordance
with the requirements of the Securities Act.&nbsp; In the event of the failure by such holder to comply with the Company&rsquo;s
request within fifteen (15) business days from the date of such request, the Company shall be permitted to exclude such holder
from a registration statement without being subject to the payment of any amount of Liquidated Damages to such holder. At such
time that such holder complies with the Company&rsquo;s request, the Company shall use its reasonable best efforts to include such
holder in the registration statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">7.5.&#9;<U>Expenses</U>.
All expenses incurred by the Company in complying with Section 7, including, without limitation, all registration and filing fees,
printing expenses (if required), fees and disbursements of Company counsel and independent public accountants for the Company,
fees and expenses (including reasonable counsel fees) incurred in connection with complying with state securities or &ldquo;blue
sky&rdquo; laws, fees of FINRA, and fees of transfer agents and registrars are herein called &ldquo;<B>Registration Expenses</B>.&rdquo;
All underwriting discounts, selling commissions and transfer applicable to the sale of Registrable Securities are herein called
&ldquo;<B>Selling Expenses</B>.&rdquo; The Company will pay all Registration Expenses in connection with any registration statement
described in Section 7. Selling Expenses in connection with each such registration statement shall be borne by the Seller and may
be apportioned among the Sellers in proportion to the number of shares included on behalf of the Seller relative to the aggregate
number of shares included under such registration statement for all Sellers, or as all Sellers thereunder may agree.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">7.6.&#9;<U>Indemnification
and Contribution</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(a)&#9;In the event
of a registration of any Registrable Securities under the Securities Act pursuant to Section 7, the Company will, to the extent
permitted by law, indemnify and hold harmless the Seller and each of the officers, directors, agents, Affiliates, members, managers,
control persons, and principal shareholders of the Seller, each underwriter of such Registrable Securities thereunder and each
other person, if any, who controls such Seller or underwriter within the meaning of the Securities Act, against any losses, claims,
damages or liabilities to which such Seller or person may become subject under the Securities Act or otherwise, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement of any
material fact contained in any registration statement under which such Registrable Securities was registered under the Securities
Act pursuant to Section 7, any preliminary prospectus or final prospectus contained therein, or any amendment or supplement thereof,
or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading in light of the circumstances when made, and will, subject to the provisions
of Section 7.6(c), reimburse such Seller for any reasonable legal or other expenses reasonably incurred by them in connection with
investigating or defending any such loss, claim, damage, liability or action; <I>provided, however</I>, that the Company shall
not be liable to the Seller to the extent that any such damages arise out of or are based upon an untrue statement or omission
made in any preliminary prospectus if (i) the Seller failed to send or deliver a copy of the final prospectus delivered by the
Company to the Seller with or prior to the delivery of written confirmation of the sale by the Seller to the person asserting the
claim from which such damages arise, (ii) the final prospectus would have corrected such untrue statement or alleged untrue statement
or such omission or alleged omission, or (iii) to the extent that any such loss, claim, damage or liability arises out of or is
based upon an untrue statement or alleged untrue statement or omission or alleged omission so made in conformity with information
furnished by any such Seller in writing specifically for use in such registration statement or prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(b)&#9;In the event
of a registration of any of the Registrable Securities under the Securities Act pursuant to Section 7, each Seller, severally but
not jointly, will, to the extent permitted by law, indemnify and hold harmless the Company, and each person, if any, who controls
the Company within the meaning of the Securities Act, each officer of the Company who signs the registration statement, each director
of the Company, each underwriter and each person who controls any underwriter within the meaning of the Securities Act, against
all losses, claims, damages or liabilities, joint or several, to which the Company or such officer, director, underwriter or controlling
person may become subject under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions
in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained
in the registration statement under which such Registrable Securities were registered under the Securities Act pursuant to Section
7, any preliminary prospectus or final prospectus contained therein, or any amendment or supplement thereof, or arise out of or
are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to
make the statements therein not misleading, and will reimburse the Company and each such officer, director, underwriter and controlling
person for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss,
claim, damage, liability or action; provided, however, that the Seller will be liable hereunder in any such case if and only to
the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue
statement or omission or alleged omission made in reliance upon and in conformity with information pertaining to such Seller, as
such, furnished in writing to the Company by such Seller specifically for use in such registration statement or prospectus, and
<I>provided, further, however</I>, that the liability of the Seller hereunder shall be limited to the net proceeds actually received
by the Seller from the sale of Registrable Securities pursuant to such registration statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(c)&#9;Promptly after
receipt by an indemnified party hereunder of notice of the commencement of any action, such indemnified party shall, if a claim
in respect thereof is to be made against the indemnifying party hereunder, notify the indemnifying party in writing thereof, but
the omission to so notify the indemnifying party shall not relieve the indemnifying party from any liability which it may have
to such indemnified party other than under this Section 7.6(c), and shall only relieve it from any liability which it may have
to such indemnified party under this Section 7.6(c), except and only if and to the extent the indemnifying party is materially
prejudiced by such omission. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying
party of the commencement thereof, the indemnifying party shall be entitled to participate in and, to the extent it shall wish,
to assume and undertake the defense thereof with counsel satisfactory to such indemnified party, and, after notice from the indemnifying
party to such indemnified party of its election to so assume and undertake the defense thereof, the indemnifying party shall not
be liable to such indemnified party under this Section 7.6(c) for any legal expenses subsequently incurred by such indemnified
party in connection with the defense thereof other than reasonable costs of investigation and of liaison with counsel so selected,
<I>provided, however</I>, that, if the defendants in any such action include both the indemnified party and the indemnifying party
and the indemnified party shall have reasonably concluded that there may be reasonable defenses available to indemnified party
which are different from or additional to those available to the indemnifying party or if the interests of the indemnified party
reasonably may be deemed to conflict with the interests of the indemnifying party, the indemnified parties, as a group, shall have
the right to select one separate counsel, reasonably satisfactory to the indemnified and indemnifying party, and to assume such
legal defenses and otherwise to participate in the defense of such action, with the reasonable expenses and fees of such separate
counsel and other expenses related to such participation to be reimbursed by the indemnifying party as incurred.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(d)&#9;In order to
provide for just and equitable contribution in the event of joint liability under the Securities Act in any case in which either
(i) a Seller, or any controlling person of a Seller, makes a claim for indemnification pursuant to this Section 7.6 but it is judicially
determined (by the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal
or the denial of the last right of appeal) that such indemnification may not be enforced in such case notwithstanding the fact
that this Section 7.6 provides for indemnification in such case, or (ii) contribution under the Securities Act may be required
on the part of the Seller or controlling person of the Seller in circumstances for which indemnification is not provided under
this Section 7.6, then, and in each such case, the Company and the Seller will contribute to the aggregate losses, claims, damages
or liabilities to which they may be subject (after contribution from others) in such proportion so that the Seller is responsible
only for the portion represented by the percentage that the public offering price of its securities offered by the registration
statement bears to the public offering price of all securities offered by such registration statement, <I>provided, however</I>,
that, in any such case, (y) the Seller will not be required to contribute any amount in excess of the public offering price of
all such securities sold by it pursuant to such registration statement; and (z) no person or entity guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any person or entity who was
not guilty of such fraudulent misrepresentation; and <I>provided, further, however</I>, that the liability of the Seller hereunder
shall be limited to the net proceeds actually received by the Seller from the sale of Registrable Securities pursuant to such registration
statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 76.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&#9;7.7.&#9;<U>Unlegended Shares and 144
Sales</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(a)&#9;<U>Delivery
of Unlegended Shares</U>. Within five business (5) days (such fifth (5<SUP>th</SUP>) business day being the &ldquo;<B>Unlegended
Shares Delivery Date</B>&rdquo;) after the day on which the Company has received (i) a notice that Conversion Shares, Warrant Shares
or any other Common Stock held by Investor has been sold pursuant to a registration statement or Rule 144 under the Securities
Act, (ii) a representation that the prospectus delivery requirements, or the requirements of Rule 144, as applicable and if required,
have been satisfied, (iii) the original share certificates representing the shares of Common Stock that have been sold, and (iv)
in the case of sales under Rule 144, customary representation letters of Investor and, if required, Investor&rsquo;s broker regarding
compliance with the requirements of Rule 144, the Company, at its expense, (y) shall deliver, and shall cause legal counsel selected
by the Company to deliver to its transfer agent (with copies to Investor) an appropriate instruction directing the delivery of
shares of Common Stock without any legends including the legend set forth in Section 3.10 above (the &ldquo;<B>Unlegended Shares</B>&rdquo;);
and (z) cause the transmission of the certificates representing the Unlegended Shares, together with a legended certificate representing
the balance of the submitted Common Stock certificate, if any, to Investor at the address specified in the notice of sale, via
express courier, by electronic transfer or otherwise on or before the Unlegended Shares Delivery Date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(b)&#9;<U>DWAC</U>.
In lieu of delivering physical certificates representing the Unlegended Shares, upon request of the Investors, so long as the certificates
therefor do not bear a legend, the Common Stock is eligible for electronic transfer through the Depository Trust Company, and the
Investor is not obligated to return such certificate for the placement of a legend thereon, the Company shall cause its transfer
agent to electronically transmit the Unlegended Shares by crediting the account of Investor&rsquo;s prime broker with the Depository
Trust Company through its Deposit Withdrawal Agent Commission system. Such delivery must be made on or before the Unlegended Shares
Delivery Date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&#9;(c)&#9;<U>Late Delivery of Unlegended
Shares</U>. The Company understands that a delay in the delivery of the Unlegended Shares pursuant to this Section 7.7 hereof later
than the Unlegended Shares Delivery Date could result in economic loss to an Investor. As compensation to a Investor for such loss,
the Company agrees to pay late payment fees (as liquidated damages and not as a penalty) to Investor for late delivery of Unlegended
Shares in the amount of $100 per business day after the Unlegended Shares Delivery Date for each $10,000 of purchase price of the
Unlegended Shares, subject to the delivery default; <I>provided</I> that such delay is not the direct or indirect result of Investor&rsquo;s
actions or omissions. If during any three hundred sixty (360) day period, the Company fails to deliver Unlegended Shares as required
by this Section 7.7 for an aggregate of thirty (30) days, then each Investor or assignee holding Securities subject to such default
may, at its option, require the Company to redeem all or any portion of the Unlegended Shares subject to such default at a price
per share equal to the greater of (i) 120% of the Purchase Price paid by Investor for the Unlegended Shares that were not timely
delivered, or (ii) a fraction in which the numerator is the highest closing price of the Common Stock during the aforedescribed
thirty day period and the denominator of which is the lowest conversion price or exercise price, as the case may be, during such
thirty (30)<B> </B>day period, multiplied by the price paid by Investor for such Common Stock (&ldquo;<B>Unlegended Redemption
Amount</B>&rdquo;). The Company shall promptly pay any payments incurred under this Section in immediately available funds upon
demand.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(d)&#9;<U>Buy-In</U>.
In addition to any other rights available to Investor, if the Company fails to deliver to Investor Unlegended Shares as required
pursuant to this Agreement and after the Unlegended Shares Delivery Date Investor, or a broker on Investor&rsquo;s behalf, purchases
(in an open market transaction or otherwise) shares of common stock to deliver in satisfaction of a sale by such Investor of the
shares of Common Stock which Investor was entitled to receive from the Company (a &ldquo;<B>Buy-In</B>&rdquo;), then the Company
shall promptly pay in cash to Investor (in addition to any remedies available to or elected by Investor) the amount by which (A)
Investor&rsquo;s total purchase price (including brokerage commissions, if any) for the shares of common stock so purchased exceeds
(B) the aggregate purchase price of the shares of Common Stock delivered to the Company for reissuance as Unlegended Shares together
with interest thereon at a rate of 15% per annum accruing until such amount and any accrued interest thereon is paid in full (which
amount shall be paid as liquidated damages and not as a penalty). For purposes of illustration only, if Investor purchases shares
of Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to $10,000 of purchase price of shares
of Common Stock delivered to the Company for reissuance as Unlegended Shares, the Company shall be required to pay the Investor
$1,000, plus interest. Investor shall promptly provide the Company written notice indicating the amounts payable to Investor in
respect of the Buy-In, including, evidence regarding the purchase of common stock for which the Buy-In is implemented.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&#9;(e)&#9;<U>144 Default</U>. At any time
commencing twelve (12) months after the Closing Date, in the event Investor is not permitted to sell any of the Conversion Shares
or Warrant Shares without any restrictive legend, or if such sales are permitted but subject to volume limitations or further restrictions
on resale as a result of the unavailability to Investor of Rule 144(b)(1)(i) under the Securities Act or any successor rule (a
&ldquo;<B>144 Default</B>&rdquo;), for any reason, including, but not limited to, failure by the Company to file quarterly, annual
or any other filings required to be made by the Company by the required filing dates (provided that any filing made within the
time for a valid extension shall be deemed to have been timely filed), or the Company&rsquo;s failure to make information publicly
available which would allow Investor&rsquo;s reliance on Rule 144 in connection with sales of Conversion Shares or Warrant Shares,
except due to a change in current applicable securities laws or because Investor is an Affiliate (as defined under Rule 144) of
the Company, then the Company shall pay such Investor as liquidated damages and not as a penalty for each thirty (30) days (or
such lesser pro-rata amount for any period less than thirty (30) days) an amount equal to one percent (1.0%) of the purchase price
of the Conversion Shares and Warrant Shares (which could be issued on a cashless basis pursuant to Section 2 of the Warrant) which
is subject to such 144 Default; provided, however, that the Company shall not be required to pay any liquidated damages to any
Investor pursuant to this Section 7.7(e) in excess of 4% of such Investor&rsquo;s aggregate Purchase Price hereunder. Liquidated
damages shall not be payable pursuant to this Section 7.7(e) in connection with Conversion Shares or Warrant Shares for such times
as such shares may be sold by the holder thereof without any legend or volume or other restrictions pursuant to Section 144(b)(1)(i)
of the Securities Act or pursuant to an effective registration statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">8&#9;<U>Miscellaneous</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">8.1&#9;<U>Appointment
of Collateral Agent</U>. In the event an Event of Default (as described in the Notes) shall have occurred and be continuing, prior
to taking any actions to declare the Notes due and payable or to attempt to foreclose on any collateral securing the Notes, Investors
holding a majority of the outstanding indebtedness evidenced by the Notes (the &ldquo;<U>Requisite Holders</U>&rdquo;) will authorize
and appoint an agent (which may be an Investor or third party) to act as collateral agent on behalf of all of the Investors, and
in such capacity to exercise for the benefit of all of the Investors all rights, powers and remedies provided to them, under or
pursuant to the Security Agreement, including, without limitation, those available upon an Event of Default, subject always to
the terms, conditions, limitations and restrictions provided in the Security Agreement. The Investors have carefully reviewed the
Security Agreement and understand the information contained therein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">8.2&#9;<U>Survival of
Warranties</U>. All of the representations and warranties made herein shall survive the execution and delivery of this Agreement
for a period of one year. The Investors are entitled to rely, and the parties hereby acknowledge that the Investors have so relied,
upon the truth, accuracy and completeness of each of the representations and warranties of the Company contained herein, irrespective
of any independent investigation made by Investors. The Company is entitled to rely, and the parties hereby acknowledge that the
Company has so relied, upon the truth, accuracy and completeness of each of the representations and warranties of the Investors
contained herein, irrespective of any independent investigation made by the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">8.3&#9;<U>Successors
and Assigns</U>. Except as otherwise provided herein, the terms and conditions of this Agreement shall inure to the benefit of
and be binding upon the respective successors and assigns of the parties (including transferees of any Notes sold hereunder or
any Common Stock issued upon conversion thereof). Nothing in this Agreement, express or implied, is intended to confer upon any
party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities
under or by reason of this Agreement, except as expressly provided in this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">8.4&#9;<U>Governing Law</U>.
This Agreement shall be governed by and construed under the laws of the State of New York as applied to agreements among New York
residents entered into and to be performed entirely within New York. The parties hereto (1) agree that any legal suit, action or
proceeding arising out of or relating to this Agreement shall be instituted exclusively in New York State Supreme Court, County
of New York, or in the United States District Court for the Southern District of New York, (2) waives any objection which the Company
may have now or hereafter to the venue of any such suit, action or proceeding, and (3) irrevocably consents to the jurisdiction
of the New York State Supreme Court, County of New York, and the United States District Court for the Southern District of New
York in any such suit, action or proceeding. The Company further agrees to accept and acknowledge service of any and all process
which may be served in any such suit, action or proceeding in the New York State Supreme Court, County of New York, or in the United
States District Court for the Southern District of New York and agrees that service of process upon the Company mailed by certified
mail to the Company's address shall be deemed in every respect effective service of process upon the Company, in any such suit,
action or proceeding. THE PARTIES HERETO AGREE TO WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION
BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY DOCUMENT OR AGREEMENT CONTEMPLATED HEREBY.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">8.5&#9;<U>Counterparts</U>.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument. This Agreement may also be executed via facsimile or by e-mail delivery of a &ldquo;.pdf&rdquo;
format data file, either of which shall create a valid and binding obligation of the party executing (or on whose behalf such signature
is executed) this Agreement with the same force and effect as if such facsimile or &ldquo;.pdf&rdquo; signature page were an original
thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">8.6&#9;<U>Titles and
Subtitles</U>. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing
or interpreting this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">8.7&#9;<U>Notices</U>.
Unless otherwise provided, any notice, authorization, request or demand required or permitted to be given under this Agreement
shall be given in writing and shall be deemed effectively given upon personal delivery to the party to be notified or three (3)
days following deposit with the United States Post Office, by registered or certified mail, postage prepaid, or two days after
it is sent by an overnight delivery service, or when sent by facsimile with machine confirmation of delivery addressed as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">If to Company, to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">BeesFree,
Inc.&#9;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">2101 Vista
Parkway, Suite 122</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">West Palm
Beach, FL 33411</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><U>Attention</U>: Chief
Executive Officer</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">Fax: (561)
939-4861</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">With a copy
to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">Littman Krooks LLP</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">2655 Third Avenue, 20<SUP>th</SUP> Floor</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">New York, NY 10017</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"><U>Attention</U>: Steven D. Uslaner, Esq.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.5in">Fax: (212) 490-2990</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">If to the Investors
to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The addresses sent forth on the signature
pages attached.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Any party may change its address for such
communications by giving notice thereof to the other parties in conformity with this Section.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">8.8&#9;<U>Transaction
Expenses; Enforcement of Transaction Documents</U>. The Company and each Investor shall pay their respective costs and expenses
incurred with respect to the negotiation, execution, delivery and&nbsp;performance of this Agreement. If any action at law or in
equity is necessary to enforce or interpret the terms of the Transaction Documents, the prevailing party shall be entitled to reasonable
attorney&rsquo;s fees, costs, and necessary disbursements in addition to any other relief to which such party may be entitled.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">8.9&#9;<U>Amendments
and Waivers</U>. This Agreement may be amended or terminated and the observance of any term of this Agreement may be waived with
respect to all parties to this Agreement (either generally or in a particular instance and either retroactively or prospectively),
with the written consent of the Company and the Note Requisite Holders (as defined below). Notwithstanding the foregoing, this
Agreement may not be amended or terminated and the observance of any term hereunder may not be waived with respect to any Investor
without the written consent of such Investor unless such amendment, termination or waiver applies to all Investors in the same
fashion. The Company shall give prompt written notice of any amendment or termination hereof or waiver hereunder to any party hereto
that did not consent in writing to such amendment, termination or waiver. Any amendment, termination or waiver effected in accordance
with this Section 8.9 shall be binding on all parties hereto, even if they do not execute such consent. No waivers of or exceptions
to any term, condition or provision of this Agreement, in any one or more instances, shall be deemed to be, or construed as, a
further or continuing waiver of any such term, condition or provision. Any amendment or waiver effected in accordance with this
paragraph shall be binding upon each holder of any securities purchased under this Agreement at the time outstanding (including
securities into which such securities are convertible), each future holder of all such securities, and the Company. For purposes
hereof, &ldquo;Note Requisite Holder(s)&rdquo; shall mean holders of Notes representing at least 66% of the aggregate amount of
principal then outstanding under such Notes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">8.10&#9;<U>Severability</U>.
If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision shall be excluded
from this Agreement and the balance of this Agreement shall be interpreted as if such provision were so excluded and shall be enforceable
in accordance with its terms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">8.11&#9;<U>Entire Agreement</U>.
This Agreement and the documents referred to herein constitute the entire agreement among the parties and no party shall be liable
or bound to any other party in any manner by any warranties, representations, or covenants except as specifically set forth herein
or therein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">8.12&#9;<U>Independent
Nature of Investors</U>. The obligations of each Investor under this Agreement or other transaction document are several and not
joint with the obligations of any other Investor, and no Investor shall be responsible in any way for the performance of the obligations
of any other Investor under this Agreement or any other transaction document. Each Investor shall be responsible only for its own
representations, warranties, agreements and covenants hereunder. The decision of each Investor to purchase Notes and Warrants pursuant
to this Agreement has been made by such Investor independently of any other Investor and independently of any information, materials,
statements or opinions as to the business, affairs, operations, assets, properties, liabilities, results of operations, condition
(financial or otherwise) or prospects of the Company which may have been made or given by any other Investor or by any agent or
employee of any other Investor, and no Investor or any of its agents or employees shall have any liability to any other Investor
(or any other person) relating to or arising from any such information, materials, statements or opinions. Nothing contained herein
or in any other transaction document, and no action taken by any Investor pursuant hereto or thereto, shall be deemed to constitute
the Investors as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Investors
are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by this Agreement.
Except as otherwise provided in this Agreement or any other transaction document, each Investor shall be entitled to independently
protect and enforce its rights arising out of this Agreement or out of the other transaction documents, and it shall not be necessary
for any other Investor to be joined as an additional party in any proceeding for such purpose. Each Investor represents and warrants
that it has been represented by its own separate legal counsel in connection with the transactions contemplated hereby and acknowledges
and understands that Littman Krooks, LLP has served as counsel to the Company only, and the Investors cannot rely upon Littman
Krooks, LLP in any manner with regard to their decision to participate in the transactions contemplated hereby.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>


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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">IN WITNESS WHEREOF,
the parties have executed this Agreement as of the date first above written.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B></B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="padding: 0; text-align: justify; text-indent: 0"><B>BEESFREE, INC.&nbsp;&nbsp;</B></TD>
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0; width: 4%">&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0; width: 36%">&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0; width: 35%">&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0; width: 25%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">By:</TD>
    <TD STYLE="padding: 0; text-indent: 0; border-bottom: Black 1pt solid"><U STYLE="text-decoration: none">/S/ JOSEPH FASCIGLIONE</U></TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">Name: Joseph Fasciglione</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">Title: Interim Chief Executive Officer</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="padding: 0; text-align: justify; text-indent: 0"><B>BEESFREE USA, INC.&nbsp;&nbsp;</B></TD>
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0; width: 4%">&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0; width: 36%">&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0; width: 60%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">By:</TD>
    <TD STYLE="padding: 0; text-indent: 0; border-bottom: Black 1pt solid">/S/ JOSEPH FASCIGLIONE</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">Name: Joseph Fasciglione</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">Title: President</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Investors:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>[TO SIGN AND COMPLETE SIGNATURE PAGE ANNEXED HERETO]</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>OMNIBUS SIGNATURE PAGE TO SECURITIES
PURCHASE AGREEMENT AND SECURITY AGREEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">By execution and delivery of this signature
page, you are agreeing to become an Investor, as defined in that certain Securities Purchase Agreement (the &ldquo;<U>Purchase
Agreement</U>&rdquo;) by and among BeesFree, Inc., a Nevada corporation (the &ldquo;<U>Company</U>&rdquo;), BeesFree USA, Inc.
(&ldquo;<U>BeesFree USA</U>&rdquo;) and the Investors (as defined in the Purchase Agreement), dated as of ______ <FONT STYLE="font-size: 10pt"><SUP>[5]</SUP></FONT>__,
201__, and acknowledges having read the representations in the Purchase Agreement section entitled &ldquo;Representations and Warranties
of the Investors,&rdquo; and hereby represents that the statements contained therein are complete and accurate with respect to
the undersigned as an Investor. The undersigned further hereby agrees that execution by the undersigned of this Omnibus Signature
Page to Securities Purchase Agreement and Security Agreement shall constitute an agreement to be bound by the terms and conditions
of each of the Purchase Agreement and the Security Agreement, with the same effect as if such separate, but related agreement,
was separately signed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 47%; padding-right: 5.4pt; padding-left: 0">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">INVESTOR:</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Print Name: ________________________</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Signature:__________________________</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Print Name: ________________________</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Signature:__________________________</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Title (if entity)_______________________</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">__________________________________</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Street Address</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">__________________________________</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Street Address &ndash; 2<SUP>nd</SUP> line</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">__________________________________</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">City, State, Zip</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P></TD>
    <TD STYLE="width: 53%; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">PRINCIPAL AMOUNT OF NOTES</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">PURCHASED: $___________________</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Number of Warrants: ________________</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Date: __________________</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Contact Person: ______________________</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Telephone No. _____________________</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">E-mail Address: ____________________</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Soc Sec # or Fed ID #________________</P></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>[5]</SUP> To be completed to reflect date of initial closing.
<B><U>Investors should not complete this</U></B>.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">SCHEDULE OF INVESTORS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 32%; border: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><B>Name</B></TD>
    <TD STYLE="width: 36%; border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><B>Principal Amount of Note</B></TD>
    <TD STYLE="width: 32%; border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><B>Number of Warrants</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 0.2in; padding-left: 0.1in; text-align: center">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 6pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 6pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 0.2in; padding-left: 0.1in">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 6pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 6pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 0.2in; padding-left: 0.1in">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 6pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 6pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 0.2in; padding-left: 0.1in">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 6pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 6pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 0.2in; padding-left: 0.1in">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 6pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 6pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 0.2in; padding-left: 0.1in">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 6pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 6pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 0.2in; padding-left: 0.1in">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 0.2in; padding-left: 0.1in">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TOTAL</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 6pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 6pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">APPENDIX A</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><U>Additional Definitions</U></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For purposes of this
Agreement, the following additional capitalized terms shall have the respective definitions set forth below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Affiliate</U>&rdquo;
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person, as such terms are used in and construed under Rule 405 under the Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Board
of Directors</U>&rdquo; means the board of directors of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Business
Day</U>&rdquo; means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or
any day on which banking institutions in the State of New York are authorized or required by law or other governmental action to
close.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Commission</U>&rdquo;
means the United States Securities and Exchange Commission.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Conversion
Shares</U>&rdquo; means the shares of Common Stock issuable upon conversion of all principal and accrued but unpaid interest under
the Notes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Exchange
Act</U>&rdquo; means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>FCPA</U>&rdquo;
means the Foreign Corrupt Practices Act of 1977, as amended.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Liens</U>&rdquo;
means a lien, charge, pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Material
Adverse Effect</U>&rdquo; means a material adverse effect on the financial condition, results of operations, prospects, properties
or business of the Company and its Subsidiaries taken as a whole.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Person</U>&rdquo;
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Principal
Market</U>&rdquo; means whichever of the following is at the time the principal trading exchange or market for the Common Stock;
NYSE Amex Equities, Nasdaq Capital Market, Nasdaq Global Market, Nasdaq Global Select Market, OTC Market, Bulletin Board, or New
York Stock Exchange.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Securities
Act</U>&rdquo; means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Subsidiary</U>&rdquo;
means any subsidiary of the Company as set forth on <U>Schedule 2.1</U> and shall, where applicable, also include any direct or
indirect subsidiary of the Company formed or acquired after the date hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Trading
Day</U>&rdquo; means a day on which the principal Trading Market is open for trading.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Trading
Market</U>&rdquo; means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on
the date in question: the NYSE AMEX, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the
New York Stock Exchange, the OTC Bulletin Board, the OTCQX, OTCQB or OTC Pink (or any successors to any of the foregoing).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Transaction
Documents</U>&rdquo; means this Agreement, the Note, the Warrant, and the Security Agreement, together with all exhibits and schedules
thereto and hereto and any other documents or agreements executed in connection with the transactions contemplated hereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&ldquo;<U>Warrant
Shares</U>&rdquo; means the shares of Common Stock issuable upon exercise of the Warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>SCHEDULE 3.6</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>RISK FACTORS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">An investment in the Securities
is speculative and illiquid and involves a high degree of risk, including the risk of a loss of your entire investment. You should
carefully consider the risks and uncertainties described below, the risks set forth in our filings with the SEC and the other information
contained in the Securities Purchase Agreement of which this Schedule is a part, before purchasing any Securities. The risks set
forth below are not the only ones facing our Company. Additional risks and uncertainties may exist that could also adversely affect
our business, operations and prospects. Based on the foregoing, our business, financial condition, prospects and/or operations
could suffer. In such event, the value of the securities you are purchasing could decline, and you could lose all or a substantial
portion of the money that you invest. No inference should be drawn as to the magnitude of any particular risk from its position
in the list of risk factors. &nbsp;As used in these Risk Factors, &ldquo;we&rdquo; and &ldquo;our&rdquo; refers to the Company
and its subsidiaries.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>RISKS RELATED TO OUR BUSINESS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We have a very limited operating
history; we have not yet generated revenue and incurred losses since inception; and we expect to continue to incur losses for the
near term. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have a very limited operating history.
Since our inception in August 2011, we have incurred net losses and as of September 30, 2013, we had an accumulated deficit of
$3,969,453. Our prospects must be considered in light of the uncertainties, risks, expenses, and difficulties frequently encountered
by companies in their early stages of operations. We anticipate that our accumulated deficit has grown since September 30, 2013.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We continue to experience a severe,
continuing cash shortage and without sufficient additional financing we may not be able to execute our and may be required to cease
operations, and this demonstrates uncertainty as to our ability to continue as a going concern.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of September 30, 2013, our cash and
cash equivalents amounted to $83,609. We have generated no revenues in 2013, and we have been dependent upon proceeds from various
fundraising activities to fund our operations. If we do not raise sufficient capital to fund our operations until we can generate
sufficient internal cash flow,&nbsp;we may be required to discontinue or further substantially modify our business. We cannot be
certain that additional financing will be available to us on favorable terms when required, if at all. The failure to raise needed
funds could have a material adverse effect on our business, financial condition, operating results and prospects.&nbsp; These factors
raise substantial doubt about our ability to continue as a going concern. The report of the independent registered public accounting
firm relating to the audit of our consolidated financial statements for the year ended December 31, 2012 contains an explanatory
paragraph expressing uncertainty regarding our ability to continue as a going concern because of our operating losses and our need
for additional capital. Such explanatory paragraph could make it more difficult for us to raise additional capital and may materially
and adversely affect the terms of any future financing that we may obtain.&nbsp; There can be no assurances that the audit report
related to our financial statements for the year ended December 31, 2013 will not also express substantial doubt about our ability
to continue as a going concern.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We have limited operating history
and as such an investor cannot assess our profitability or performance based on past results. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are a development stage company, with
limited operations that commenced upon our incorporation in August 2011. Our primary assets consist of our rights to the patent-pending
proprietary chemical compound (BeesVita Plus<SUP>TM</SUP>) and dispenser (the Beespenser<SUP>TM</SUP>). We have yet to commence
active operations to sell any products associated with the proprietary bee healthcare technologies that we intend to market. We
have no prior operating history from which to evaluate our likelihood of success in operating our business, generating any revenues
or achieving profitability. Accordingly, it is possible that the Securities and Exchange Commission, FINRA, a national exchange
or other regulatory authority may take the position that we are a &ldquo;shell&rdquo; company. This determination would restrict
our ability to remove restrictive legends from our securities pursuant to Rule 144.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our operations to date have consisted primarily
of acquiring the patent-pending technology rights to our proprietary chemical compound and dispenser, securing office space, hiring
sales personnel, continuing research and development, hiring laboratory personnel, constructing an industrial model of the BeesFree
Dispenser, commencing the regulatory clearance process in Argentina and Europe, finding manufacturers in the US, Argentina and
Europe, and commencing trials in the US with large, commercial beekeepers. We will require significant additional capital to achieve
our business objectives, and the inability to obtain such financing on acceptable terms or at all could lead to closure of our
business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our revenue and income potential is uncertain.
Any evaluation of our business and prospects must be considered in light of these factors and the risks and uncertainties often
encountered by companies in the development stage.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We are a development stage company
that has a limited operating history, therefore, it is possible that the Securities and Exchange Commission, FINRA, a national
exchange, or other regulatory authority may take the position that we are a &ldquo;shell&rdquo; company which would limit the ability
of our shares to be sold under Rule 144. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are a development stage company, with
limited operations that commenced upon our incorporation in August 2011. Our primary assets consist of our rights to the patent-pending
proprietary chemical compound (BeesVita Plus<SUP>TM</SUP>) and dispenser (the Beespenser<SUP>TM</SUP>), and we have limited operating
history. We have yet to commence active operations to sell any products associated with the proprietary bee healthcare technologies
that we intend to market. We have no prior operating history from which to evaluate our likelihood of success in operating our
business, generating any revenues or achieving profitability. Accordingly, it is possible that the Securities and Exchange Commission,
FINRA, a national exchange or other regulatory authority may take the position that we are a &ldquo;shell&rdquo; company. This
determination would restrict our ability to remove restrictive legends from our securities pursuant to Rule 144.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We are developing and attempting to commercialize new
and unproven technologies.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We work with and intend to develop new
technologies for the beekeeping healthcare industry that have not yet been proven for commercial application. While we believe
that each of the component agents and compounds that comprise our patent-pending proprietary mix of compounds have proven effective
in promoting greater health in the bee population when being administered individually, we are not certain that our patent-pending
proprietary mix will be effective in combating the effects of CCD or even in improving the health of the bee population, especially
given that scientists have not come to a consensus as to the causes of CCD. In addition, while we have designed the Beespenser<SUP>TM</SUP>
using scientifically-proven theories concerning shapes and colors that attract bees, we cannot be sure that the Beespenser<SUP>TM</SUP>
will be efficacious in delivering our patent-pending proprietary mix of compounds to the bee population it is intended to serve.
Even if the mix of compounds and the Beespenser<SUP>TM</SUP> prove effective, there is no guarantee that these technologies will
be appropriate for commercial application without additional capital investment and a significant amount of work, if at all. It
is therefore possible that products developed by us may not achieve widespread market acceptance. We cannot be certain that any
such products will be able to be commercialized and sold successfully, or at all.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We may need additional financing
to fund our activities in the future. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Assuming we raise the full $2 million in
gross proceeds in this Offering, we anticipate we will not require additional funding for at least 12 months. While we anticipate
that we will generate revenues in 2014 and may generate sufficient cash flow to be self sufficient, as noted above, we have limited
operating history and an unproven technology. We may consume our available capital if revenues are delayed or if we are not efficient
in developing our products or if regulatory requirements change. We might seek equity or debt financings in the future to fund
our operations. However, in such event, there is no assurance that we will be successful in raising the additional capital we need
to fund our business plan on terms that are acceptable to us, or at all. If we do not succeed in raising additional funds on acceptable
terms, we could be forced to discontinue product development, forego sales and marketing efforts, sacrifice attractive business
opportunities, cease operations entirely and sell or otherwise transfer all or substantially all of our remaining assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our ability to compete successfully
and achieve future revenue will depend on our ability to protect our proprietary technology. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">It is possible that the technology for
our proprietary mix of chemical compounds (BeesVita Plus<SUP>TM</SUP>) and our dispenser (the Beespenser<SUP>TM</SUP>) may not
provide any competitive advantage to us or will be successfully challenged, invalidated or circumvented in the future. In addition,
potential competitors may have substantial resources and could make significant investments in competing technologies, may seek
to apply for and obtain patents that will prevent, limit or interfere with our ability to make, use or sell our products either
in the U.S. or in international markets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The degree of future protection for our
proprietary rights is uncertain, and we cannot ensure that:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>we were the first to make the inventions covered by our patent-pending technology;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>we were the first to seek a patent application for these inventions;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>others will not independently develop similar, or alternative technologies, or duplicate any of our technologies;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>our pending patent will be valid or enforceable;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>any potential patents issued to us will provide a basis for commercially viable products, will provide us with any competitive
advantages or will not be challenged by third parties;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>we will develop additional proprietary technologies or products that are patentable; or</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the patents of others will not have an adverse effect on our business.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition to our proprietary mix of chemical
compounds, we rely on trade secrets and proprietary know-how, which we seek to protect in part through confidentiality and proprietary
information agreements and limit access to and distribution of our proprietary information. Such measures may not provide adequate
protection for our trade secrets or other proprietary information. In addition, our trade secrets or proprietary technology may
become known or be independently developed by competitors. Our failure to protect our proprietary technology could have a material
adverse effect on our business, financial condition and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Any future litigation over intellectual
property rights would likely involve significant expense on our part and distract our management. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our ability to compete successfully and
achieve future revenue will depend in part on our ability to operate without infringing on the rights of others and our ability
to enforce our own intellectual property rights. Litigation or claims could result in substantial costs and diversion of resources
and could have a material adverse effect on our business, financial condition, and results of operations. Although there are no
pending lawsuits against us regarding our technology or notices that we are infringing on the intellectual property rights of others,
litigation or infringement claims may arise in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We are currently dependent on only
a few products. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our sole source of revenues for the foreseeable
future is expected to come from sales of the Beespenser<SUP>TM</SUP> and bottles of our proprietary mix of chemical compounds (BeesVita
Plus<SUP>TM</SUP>). Our operations may be adversely affected by economic, regulatory or similar problems or events that may apply
only to us, only to the beekeeping industry or only within a particular market area in which our products are sold. The adverse
effect of any such problems or events could be more easily absorbed in a more diversified business or one that operates in a variety
of different industries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I></I></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We may be unable to keep pace with
the technological changes in the beekeeping industry or with the changes facing bee populations worldwide and, as a result, our
technologies may become obsolete. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Although the beekeeping industry is currently
a limited field, with few competitors, potential competitors, including chemical manufacturers, could have significantly greater
resources than us and could employ such resources to compete with our technology and products. Research and discoveries by others
may result in insights or breakthroughs, especially with respect to treatment of CCD, which may render our technologies obsolete
even before they generate any revenue. These factors could have a material adverse effect on our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We have limited manufacturing experience
and will depend on third-party suppliers and manufacturers, and if they are unable to deliver, our business may suffer. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To be successful, our products will need
to be manufactured in sufficient quantities, in compliance with regulatory requirements and at an acceptable cost. We have limited
manufacturing experience. We expect to purchase all of our components and supplies from third-party suppliers and to outsource
the manufacturing to contract manufacturers. Although we do not anticipate any difficulties in partnering with suppliers and manufacturers,
due to the generally wide availability of our component parts and the simplicity of the design of our products, we may still experience
significant difficulty in locating suppliers and manufacturers qualified to manufacture our products or components thereof. Further,
manufacturers generally have the right to manufacture similar products that may compete with our products, and to terminate their
agreements without significant penalty under certain conditions. In addition, disclosure of our proprietary technology to a third-party
for manufacturing purposes increases the risk of theft or loss of trade secrets. There can be no assurance that we will be successful
in locating manufacturers or suppliers on terms and conditions or with reputations and experience acceptable to us or that our
trade secrets will not be stolen.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Additionally, unanticipated increases in
the prices of our component parts could increase production costs and adversely affect our profitability. While we do not anticipate
significant difficulty fulfilling our supply purchase requirements, we cannot provide any assurances that we will not experience
such difficulties in the future</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We intend to rely on third parties
whose operations are outside our control.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We intend to rely on arrangements with
third-party shippers and carriers such as independent shipping companies for timely delivery of our products to our customers.
As a result, we may be subject to carrier disruptions and increased costs due to factors that are beyond our control, including
labor strikes, inclement weather, natural disasters and rapidly increasing fuel costs. If the services of any of these third parties
become unsatisfactory, we may experience delays in meeting our customers&rsquo; product demands and we may not be able to find
a suitable replacement on a timely basis or on commercially reasonable terms. Any failure to deliver products to our customers
in a timely and accurate manner may damage our reputation and could cause us to lose customers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The departure of key personnel could
disrupt our business. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We depend on the continued efforts of our
chief executive officer and our chief scientist. We cannot be certain that any individual will continue in such capacity for any
particular period of time. The loss of key personnel, or the inability to hire and retain qualified employees, could negatively
impact our ability to manage our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our revenue may be adversely affected
by fluctuations in currency exchange rates. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Initially, we anticipate that a significant
portion of our revenues and expenses will occur in Argentina and Europe. However, we report our financial condition and results
of operations in U.S. dollars. As a result, fluctuations between the U.S. dollar, the Euro and the Argentine peso will impact the
amount of our revenues. For example, if either the Euro or the Argentine peso appreciates relative to the U.S. dollar, the fluctuation
will result in a positive impact on the revenues that we report. However, if either the Euro or the Argentine peso depreciates
relative to the U.S. dollar, there will be a negative impact on the revenues we report due to such fluctuation. It is possible
that the impact of currency fluctuations will result in a decrease in reported sales even though we have experienced an increase
in sales when reported in the Argentine peso. Conversely, the impact of currency fluctuations may result in an increase in reported
sales despite declining sales when reported in the Argentine peso. The exchange rate from the U.S. dollar to the Euro and the Argentine
peso has fluctuated substantially and may continue to do so in the future. Though we may choose to hedge our exposure to foreign
currency exchange rate changes in the future, there is no guarantee such hedging, if undertaken, will be successful.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><BR>
<B><I>If we are not successful in protecting our intellectual property rights, our ability to compete or maintain market share
may be harmed. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In order to protect our proprietary technology,
we are dependent on the appropriate authorities granting our patents. However, despite our efforts to protect our intellectual
property, we cannot assure you that:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>any future patents will not be challenged, invalidated or circumvented;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>our pending patent applications or future applications will be approved;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>others will not independently develop similar products or processes to our, or design around our, patents; or</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Any of the measures described above will provide meaningful protection.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">It may be possible for a third-party, including
our licensees, to misappropriate our copyrighted material or trademarks. It is possible that existing or future patents may be
challenged, invalidated or circumvented and effective patent, copyright, trademark and trade secret protection may be unavailable
or limited in foreign countries. It may be possible for a third-party to copy or otherwise obtain and use our products or technology
without authorization, develop similar technology independently or design around our pending patents. As a result, despite our
efforts and expenses, we may be unable to prevent others from infringing upon or misappropriating our intellectual property, which
could harm our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Risks Relating to Our Organization and Our Common Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Because we became public by means
of a &ldquo;reverse merger,&rdquo; we may not be able to attract the attention of major brokerage firms. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">There may be risks associated with us becoming
public through a &ldquo;reverse merger&rdquo; with a shell company. Although the shell company did not have recent or past operations
or assets and we performed a due diligence review of the shell company, there can be no assurance that we will not be exposed to
undisclosed liabilities resulting from the prior operations of the shell company. Securities analysts of major brokerage firms
and securities institutions may also not provide coverage of us because there were no broker-dealers who sold our stock in a public
offering that would be incentivized to follow or recommend the purchase of our common stock. The absence of such research coverage
could limit investor interest in our common stock, resulting in decreased liquidity. No assurance can be given that established
brokerage firms will, in the future, want to cover our securities or conduct any secondary offerings or other financings on our
behalf.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our certificate of incorporation
allows for our board to create new series of preferred stock without further approval by holders of our Common Stock, which could
adversely affect the rights of the holders of our Common Stock. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><BR>
Our board of directors has the authority to fix and determine the relative rights and preferences of preferred stock. Our board
of directors also has the authority to issue preferred stock without further approval by holders of our Common Stock. As a result,
our board of directors could authorize the issuance of a series of preferred stock that would grant to holders the preferred right
to our assets upon liquidation, the right to receive dividend payments before dividends are distributed to the holders of Common
Stock and the right to the redemption of the shares, together with a premium, prior to the redemption of our Common Stock. In addition,
our board of directors could authorize the issuance of a series of preferred stock that has greater voting power than our common
stock or that is convertible into our common stock, which could decrease the relative voting power of our Common Stock or result
in dilution to our existing stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The Securities are being offered
on &ldquo;reasonable efforts, no minimum&rdquo; basis</I>.&nbsp; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Securities are being offered on a &ldquo;reasonable
efforts, no minimum&rdquo; basis.&nbsp; In this type of offering where there is no minimum amount necessary to consummate the offering,
there is no assurance that the Offering Amount of $2,000,000 will be sold.&nbsp; Accordingly, persons purchasing the Securities
do so without any assurance that sufficient funds can be raised to satisfy our working capital needs and to otherwise allow the
Company to effectuate its business plan.&nbsp; The failure to raise the Offering Amount will also increase the need of the Company
to obtain additional financing, which may or may not be available at such time on terms satisfactory to us, if at all.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><B><I>The Company may
not have available working capital to satisfy interest payments on the Notes or repay the Notes on maturity. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">In the event we do not
raise sufficient funds hereunder or begin generating revenues soon we may be unable to repay the Notes when due. If the Company
fails to timely meet its financial obligations as they come due, its operating results, balances sheet and future ability to raise
capital could be seriously harmed. Furthermore, Company security holders, including Investors in this Offering, may suffer a loss
of all or a substantial portion of their investment in the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Securities, Conversion
Shares and Warrant Shares will not be registered and cannot be sold for at least six months after the Securities are issued.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">The ability to resell
such securities will depend upon the availability of an exemption to the requirements of Section 5 of the Securities Act. The most
commonly utilized exemption is Rule 144. Under Rule 144, the securities issuable upon conversion of the Notes and exercise of the
Warrants may become eligible for resale six (6) months after the Closing in which the applicable security is issued, so long as
the Company fulfills its current reporting requirements under the Exchange Act. After a year, the current information requirement
no longer applies for purchasers who are not Affiliates of the Company. Any purchasers which are Affiliates of the Company will
be subject to certain other requirements such as volume limitations, manner of share and filing requirements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our sale of a significant number
of shares of our Common Stock, convertible securities or warrants or the issuance or exercise of stock options could depress the
market price of our stock.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">The market price of our
Common Stock could decline as a result of sales of substantial amounts of our common stock in the public market or the perception
that substantial sales could occur because of our sale of Common Stock, convertible securities or warrants, or the issuance or
exercise of stock options. These sales also might make it difficult for us to sell equity securities in the future at a time when,
and at a price which, we deem appropriate. As of September 30, 2013, we had stock options to purchase 812,500 shares of our Common
Stock outstanding, of which options to purchase 737,500 shares were exercisable. In addition, we have issued and outstanding shares
of Series A Preferred Stock, Series B Preferred Stock, convertible notes and warrants convertible or exercisable (after taking
into affect anti-dilution adjustment triggered by this Offering) into an aggregate 14,457,225 shares of our Common Stock, a significant
number of which contain full ratchet and antidilution protection provisions. Exercise of any current or future outstanding stock
options or warrants could harm the market price of our Common Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We may be unable to list our
Common Stock, which currently trades on the QTC markets, on the NASDAQ or any other securities exchange, in which case an investor
may find it difficult to dispose of shares or obtain accurate quotations as to the market value of our Common Stock.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">Although we may apply
to list our common stock on NASDAQ or the NYSE Amex Equities in the future when and if we have stabilized our liquidity concerns,
we may not be able to meet the initial listing standards, including the minimum per share price and minimum capitalization requirements,
of either of those or any other stock exchange, and we may not be able to maintain a listing of our Common Stock on either of those
or any other stock exchange. If we are unable to list our common stock on NASDAQ, the NYSE Amex Equities or another stock exchange,
or to maintain that listing, we expect that our Common Stock will continue to trade on the QTC markets, or possibly another over-the-counter
quotation system or on the &quot;pink sheets,&quot; where an investor may find it difficult to dispose of shares or obtain accurate
quotations as to the market value of our Common Stock. &nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our Common Stock is considered
a &ldquo;penny stock&rdquo; and may be difficult to sell.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">Our Common Stock is considered
to be a &ldquo;penny stock&rdquo; since it meets one or more of the definitions in Rule 3a51-1 under the Securities Exchange Act
of 1934, as amended (the &ldquo;Exchange Act&rdquo;). These include but are not limited to the following: (i)&nbsp;the stock trades
at a price less than $5.00 per share; (ii) it is not traded on a &ldquo;recognized&rdquo; national exchange; (iii)&nbsp;it is&nbsp;not
quoted on the NASDAQ Stock Market, or even if so, has a price less than $5.00 per share; or (iv) is issued by a company with net
tangible assets less than $2.0 million, if in business more than a continuous three years, or with average revenues of less than
$6.0 million for the past three years. The principal result or effect of being designated a &ldquo;penny stock&rdquo; is that securities
broker-dealers cannot recommend the stock but must trade in it on an unsolicited basis.&nbsp; Section&nbsp;15(g) of the Exchange
Act&nbsp;and Rule&nbsp;15g-2 promulgated thereunder by the SEC require broker-dealers dealing in penny stocks to provide potential
investors with a document disclosing the risks of penny stocks and to obtain a manually signed and dated written receipt of the
document before effecting any transaction in a penny stock for the investor&rsquo;s account.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">Potential investors in
our offering are urged to obtain and read such disclosure carefully before purchasing any Securities. Moreover, Rule 15g-9 may
be somewhat of an impediment to your sale of the shares of Common Stock underlying the Securities you may purchase, as it requires
broker-dealers in penny stocks to approve the account of any investor for transactions in such stocks before selling any penny
stock to that investor. This procedure requires the broker-dealer to (i) obtain from the investor information concerning his or
her financial situation, investment experience and investment objectives; (ii) reasonably determine, based on that information,
that transactions in penny stocks are suitable for the investor and that the investor has sufficient knowledge and experience as
to be reasonably capable of evaluating the risks of penny stock transactions; (iii)&nbsp;provide the investor with a written statement
setting forth the basis on which the broker-dealer made the determination in (ii)&nbsp;above; and (iv)&nbsp;receive a signed and
dated copy of such statement from the investor, confirming that it accurately reflects the investor&rsquo;s financial situation,
investment experience and investment objectives.&nbsp; Compliance with these requirements may make it more difficult for holders
of our common stock to resell their shares to third parties or to otherwise dispose of them in the market or otherwise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We may not be able to attract
the attention of brokerage firms, which could have a material adverse impact on the market value of our Common Stock.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">Security analysts of
brokerage firms have not provided, and may not provide in the future, coverage of our common stock since there is limited incentive
to brokerage firms to produce research reports and recommend the purchase of our Common Stock. To date, we have not been able to
attract the attention of brokerage firms and securities analysts. The absence of such attention limits the likelihood that an active
market will develop for our common stock. It also will likely make it more difficult to attract new investors at times when we
require additional capital.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The trading price of our Common
Stock is volatile, which could cause the value of an investment in the Company&rsquo;s securities to decline.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">The market price of shares
of our Common Stock has been volatile. The price of our Common Stock may continue to fluctuate in response to a number of factors,
such as:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our cash resources and our ability to obtain additional funding;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">announcements by us or a competitor of business developments;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our entry into or termination of strategic business relationships;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">changes in government regulations; and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">changes in our revenue or expense levels</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">The occurrence of any
of these events may cause the price of our Common Stock to fall. In addition, the stock market in general has experienced volatility
that often has been unrelated to the operating performance or financial condition of individual companies. Any broad market or
industry fluctuations may adversely affect the trading price of our Common Stock, regardless of operating performance or prospects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">An investment in the Securities
is speculative and there can be no assurance of any return on any such investment.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">An investment in the
Securities is speculative and there is no assurance that investors will obtain any return on their investment. Investors will be
subject to substantial risks involved in an investment in the Company, including the risk of losing their entire investment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have broad discretion on
how we use any proceeds we receive from this Offering.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">Our management has broad
discretion on how to use and spend any proceeds we receive from this Offering and may use the proceeds in ways that differ from
the proposed uses discussed in this Agreement. Our stockholders may not agree with our decision on how to use such proceeds. If
we fail to spend the proceeds effectively, our business and financial condition could be harmed and we may need to seek additional
financing sooner than expected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: blue"><FONT STYLE="text-underline-style: double; color: Black"><B>The
Securities may be purchased by parties that are related to our Company.</B></FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: blue"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="font-weight: normal; text-underline-style: double; color: Black">Our
officers, directors, employees and related parties (including current shareholders and related parties of shareholders) may purchase
Securities in this Offering </FONT><FONT STYLE="color: Black">and such amounts will be included in determining whether the Offering
Amount has been sold. <FONT STYLE="font-weight: normal; text-underline-style: double">Because there may be substantial purchases
by affiliates of the Company, no potential investor should place any reliance on the sale of any amount of the Securities as an
indication of the merits of the Offering. Each investor must make his own investment decision as to the merits of the Offering.</FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Note conversion price and
the Warrant exercise price were determined by the Company and may not be indicative of the Company&rsquo;s actual value or the
value of the Common Stock underlying the Notes or Warrants.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">The purchase price of
the Securities, the conversion price of the Notes and the exercise price of the Warrants were determined by the Company and took
into account, among other things, previous prices of our Common Stock, our business and growth plans, and other factors that we
deemed relevant. The purchase price of the Securities, the conversion price of the Notes and the Warrant exercise price are not
necessarily related to the asset value, net worth or any other established criteria of value of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Investors in this Offering
will experience immediate and substantial dilution.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">The investors in this
Offering will experience an immediate and substantial dilution of their investment<I>. </I>Therefore, the investors in this Offering
will bear a substantial portion of the risk of loss, while control of our Company will remain in the hands of our Company&rsquo;s
officers, directors and founders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Securities, Conversion
Shares and Warrant Shares will be subject to restrictions on transfer.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">The Securities and the
securities issuable upon conversion and exercise thereof have not been registered under the Securities Act, or under the securities
laws of any state, but are being offered and sold in reliance upon exemptions from registration thereunder, including the exemptions
from federal registration contained in Rule 506 of Regulation D promulgated thereunder and applicable state laws. As a consequence
of the restrictions on subsequent transfer imposed by these exemptions, the Securities may not subsequently be sold, assigned,
conveyed, pledged, hypothecated or otherwise transferred by the holder thereof, whether or not for consideration, except upon registration
of such securities or the issuance to us of such evidence as may be satisfactory to counsel for us to the effect that any such
transfer will not be in violation of the Securities Act, and applicable state securities laws. Investors of the Securities must
be prepared to bear the economic risks of investment for an indefinite period of time since the Securities cannot be sold unless
they are subsequently registered or an exemption from registration is available, such as afforded pursuant to Rule 144 of the Securities
Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Offering has not been reviewed
or approved by regulatory agencies.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">The sale of the Notes
and Warrants offered hereby has not been approved or disapproved by the Commission or any state regulatory agencies, and no regulatory
body has passed upon or endorsed the accuracy, adequacy, or completeness of the information in this Agreement. Accordingly, prospective
investors must rely on their own examination of the Agreement, including, without limitation, the merits of, and risks involved
in, acquiring the Notes and Warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>RISKS RELATED TO THE COMPANY&rsquo;S
PRIOR FINANCING ARRANGEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The purchase price protection
features of the Company&rsquo;s securities issued in prior private placements could require the Company to issue a substantially
greater number of shares of Common Stock, which will cause dilution to the Company&rsquo;s stockholders.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In December 2011 the
Company completed a private offering of an aggregate of 2,200,000 shares of the Company&rsquo;s Series A Preferred Stock and warrants
(&ldquo;Series A Warrants&rdquo;) to purchase up to 2,200,000 shares of Common Stock (the &ldquo;2011 Private Placement&rdquo;).
The Series A Preferred Stock is currently convertible into shares of Common Stock at an initial conversion price of $1.00 per share,
or 2,200,000 shares of Common Stock in the aggregate). The warrants are also currently exercisable at $1.50 per share. If we issue
shares of Common Stock or securities convertible into or exchangeable or exercisable for Common Stock, for a consideration at a
price per share, or having a conversion, exchange or exercise price per share less than the conversion price of the Series A Preferred
Stock or the exercise price of the Series A Warrants in effect prior to such sale or issuance, then immediately prior to such sale
or issuance the conversion price of the Series A Preferred Stock and the exercise price of the Series A Warrants shall be reduced
to such other lower price. Based on the foregoing adjustment provision, upon consummation of this Offering, investors in the 2011
Private Placement will be entitled to a significant number of additional shares of Common Stock underlying their Series A Warrants
and reduction of the exercise price of their outstanding Series A Warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On October 10, 2012
the Company completed a private offering of an aggregate of 3,099 shares of the Company&rsquo;s Series B Preferred Stock and warrants
(&ldquo;Series B Warrants&rdquo;) to purchase up to 309,900 shares of Common Stock (the &ldquo;2012 Private Placement&rdquo;).
The Series B Preferred Stock is currently convertible into shares of Common Stock at an initial conversion price of $1.50 per share,
or 361,550 shares of Common Stock in the aggregate). The warrants are also currently exercisable at $1.50 per share. If we issue
shares of Common Stock or securities convertible into or exchangeable or exercisable for Common Stock, for a consideration at a
price per share, or having a conversion, exchange or exercise price per share less than the conversion price of the Series B Preferred
Stock or the exercise price of the Series B Warrants in effect prior to such sale or issuance, then immediately prior to such sale
or issuance the conversion price of the Series B Preferred Stock and the exercise price of the Series B Warrants shall be reduced
to such other lower price. Based on the foregoing adjustment provision, upon consummation of this Offering, investors in the 2012
Private Placement will be entitled to a significant number of additional shares of Series B Preferred Stock and reduction of the
conversion price of the Series B Preferred Stock and the exercise price of their outstanding Series B Warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>v364595_ex10-2.htm
<DESCRIPTION>EXHIBIT 10.2
<TEXT>
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<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="text-transform: uppercase">SECURITY
AGREEMENT</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This <B>SECURITY AGREEMENT
</B>(this &ldquo;Agreement&rdquo;), dated as of December 31, 2013, is made by and between BeesFree, Inc., a Nevada corporation
(the &ldquo;Company&rdquo;), and BeesFree USA, Inc., a Delaware corporation and the Company&rsquo;s wholly-owned subsidiary (&ldquo;BeesFree
DE&rdquo;, the Company and BeesFree DE, as the context dictates, collectively, the &ldquo;Grantor&rdquo;), and those signatories
hereto who are holders of certain notes described below in the aggregate principal amount of up to $2,000,000 (the &ldquo;Noteholders&rdquo;),
to be issued by the Company from time to time on and after the date hereof, as well as their endorsees, transferees and assigns
all upon terms set forth in that certain Securities Purchase Agreement, dated March 13, 2013 (the &ldquo;Purchase Agreement&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B><U>W I T N E S S E T H:</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>WHEREAS</B>, from
time to time on and after the date hereof, the Company may issue up to $2,000,000<SUP> </SUP>of its 15% secured convertible notes
(as each may be at any time amended, extended, restated, renewed or modified, each a &ldquo;Note,&rdquo; and collectively, the
&ldquo;Notes&rdquo;) to subscribers for units offered by the Company upon the terms set forth in the Purchase Agreement;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>WHEREAS</B>, pursuant
to the terms of the Purchase Agreement, each purchaser of Notes has become a Noteholder and has agreed that in an Event of Default
(as defined in the Notes) the Requisite Holders (as defined herein) shall be required to appoint and authorize a collateral agent
(the &ldquo;Collateral Agent&rdquo;) to act for the benefit of the Noteholders prior to taking any actions to declare the Notes
due and payable or to foreclose on any Collateral securing the Notes: and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>WHEREAS</B>, it
is a condition precedent to the obligation of each of the Noteholders to purchase a Note that the Grantor shall have granted the
Noteholders a security interest in the Collateral (as hereinafter defined) as contemplated by this Agreement; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>WHEREAS</B>, the
Grantor expects to realize direct and indirect benefits as a result of the sale of the Notes to the Noteholders and desires to
grant the Noteholders a security interest in the Collateral as contemplated by this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>NOW, THEREFORE</B>,
for good and valuable consideration, the receipt and adequacy of which hereby is acknowledged, the parties agree as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>ARTICLE I &ndash; DEFINITIONS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.1&#9;This Agreement
is the Security Agreement referred to in the Purchase Agreement and the Notes. As used in this Agreement, the following terms shall
have the meanings respectively set forth below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;Agreement&rdquo;
means this Security Agreement, and any extensions, modifications, renewals, restatements, supplements or amendments hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;Bankruptcy Code&rdquo;
means Chapter 11 of Title 11 of the United States Code, as amended from time to time, and any successor statute and all rules and
regulations promulgated thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;<FONT STYLE="color: Black">Collateral&rdquo;
means substantially all of the Grantor&rsquo;s now owned or hereafter acquired right, title and interest in and to the General
Assets, the Trademarks, the Patents and the Licenses. Without limiting the generality of the foregoing, &ldquo;Collateral&rdquo;
shall include any shares of capital stock and/or other equity interests of any other direct or indirect subsidiary of the Grantor
that is obtained or acquired in the future, and, in each case, all certificates representing such shares and/or equity interests
and, in each case, all rights, options, warrants, stock, other securities and/or equity interests that may hereafter be received,
receivable or distributed in respect of, or exchanged for, any of the foregoing and all rights arising under or in connection
with the foregoing securities, including, but not limited to, all dividends, interest and cash.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: Black">&ldquo;General
Assets&rdquo; shall have the meaning set forth in Section 2.1 hereof.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: Black">&ldquo;Investment
Collateral&rdquo; shall have the meaning set forth in Section 7.1 hereof.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: Black">&ldquo;Licenses&rdquo;
shall have the meaning set forth in Section 2.4 hereof.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: Black">&ldquo;Patents&rdquo;
shall have the meanings set forth in Section 2.3 hereof.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: Black">&ldquo;Requisite
Holders&rdquo; means, at any time of determination, a majority (i.e., at least 50.1%) of the aggregate principal amount of outstanding
Notes.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: blue"><FONT STYLE="text-underline-style: double">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;Secured Obligations&rdquo;
means any and all present and future obligations of the Grantor arising under or relating to the Notes or this Agreement, whether
due or to become due, matured or unmatured, or liquidated or unliquidated, including interest that accrues after the commencement
of any bankruptcy or insolvency proceeding by or against the Grantor. For the avoidance of doubt, the Secured Obligations shall
include the obligations of the Grantor to pay the fees and expenses of the Collateral Agent, if any, and to provide indemnity to
the Collateral Agent pursuant to <U>Article XIII</U> hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;Trademarks&rdquo;
shall have the meanings set forth in Section 2.2 hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ARTICLE II &ndash;SECURITY INTERESTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">2.1&#9;<U>Grant of
Security Interest in General Assets</U>. To secure the complete and timely payment, performance and satisfaction of all of the
Secured Obligations, the Grantor hereby grants to the Noteholders, a first lien and security interest over all other security interests
with power of sale to the fullest extent permitted by applicable law, in all of the Grantor&rsquo;s right, title and interest in
and to the Grantor&rsquo;s now owned or otherwise existing and hereafter acquired or arising:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(a)&#9;accounts, contract
rights and all other forms of obligations owing to the Grantor arising out of the sale or lease of goods or the rendition of services
by the Grantor, irrespective of whether earned by performance, and any and all credit insurance, guarantees or security therefor;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(b)&#9;books and records,
including ledgers; records indicating, summarizing or evidencing the Grantor&rsquo;s properties or assets or liabilities; all information
relating to the Grantor&rsquo;s business operations or financial condition; and all other computer programs, disk or tape files,
printouts, runs or other computer prepared information;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(c)&#9;deposit accounts
(as that term is defined from time to time in the Uniform Commercial Code as in effect in the State of New York);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(d)&#9;all of the Grantor&rsquo;s
general intangibles and other personal property (including contract rights, rights arising under common law, statutes or regulations,
chooses or things in action, commercial tort claims, blueprints, drawings, purchase orders, customer lists, monies due or recoverable
from pension funds, route lists, computer programs, information contained in computer disks or tapes, literature, reports, catalogs,
insurance premium rebates, tax refunds and tax refund claims);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(e)&#9;goods (as that
term is defined from time to time in the Uniform Commercial Code as in effect in the State of New York), including (i) all inventory,
including equipment held for lease, whether raw materials, in process or finished, all material or equipment usable in processing
the same and all documents of title covering any inventory, (ii) all equipment employed in connection with the Grantor&rsquo;s
business, together with all present and future additions, attachments and accessions thereto and all substitutions therefor and
replacements thereof, and (iii) all vehicles;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(f)&#9;instruments and
other investment property (as such terms are defined from time to time in the Uniform Commercial Code as in effect in the State
of New York);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(g)&#9;negotiable collateral,
including all of the Grantor&rsquo;s right, title and interest with respect to any letters of credit, letter of credit rights,
instruments, drafts, documents and chattel paper (as each term is defined from time to time in the Uniform Commercial Code as in
effect in the State of New York), and any and all supporting obligations in respect thereof;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(h)&#9;all parcels of
real property and the related improvements thereto (whether as owner, lessee or otherwise);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(i)&#9;money or other
assets of the Grantor that now or hereafter come into the possession, custody or control of the Grantor;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(j)&#9;the proceeds and
products, whether tangible or intangible, of any of the foregoing, including proceeds of insurance covering any or all of the foregoing,
and any and all of the foregoing, or other tangible or intangible property resulting from the sale, exchange, collection or other
disposition of any of the foregoing, or any portion thereof or interest therein, and the proceeds thereof; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(k) &#9;all of the Grantor&rsquo;s
right, title and market in and to any shares of capital stock of any of its subsidiaries and the certificates representing any
such shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">All of the items described in clauses (a)-(k)
in this Section 2.1 are hereinafter individually and/or collectively referred to as the &ldquo;General Assets.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">2.2&#9;<U>Grant of
Security Interest in Trademarks</U>. To secure the complete and timely payment, performance and satisfaction of all of the Secured
Obligations, the Grantor hereby grants to the Noteholders, a security interest as and by way of a first lien and security interest
having priority over all other security interests, including with power of sale to the fullest extent permitted by applicable law,
in all of the Grantor&rsquo;s right, title and interest in and to the Grantor&rsquo;s now owned or otherwise existing and hereafter
acquired or arising: (a) trademarks, trade names, registered trademarks, trademark applications, service marks, registered service
marks and service mark applications and (b) all renewals thereof, all income, royalties, damages and payments now and hereafter
due and/or payable under and with respect thereto, including, without limitation, payments under all licenses entered into in connection
therewith and damages and payments for past or future infringements or dilutions thereof, the right to sue for past, present and
future infringements and dilutions thereof, the goodwill of the Grantor&rsquo;s business symbolized by the foregoing and connected
therewith and all of the Grantor&rsquo;s rights corresponding thereto throughout the world (all of the foregoing items described
in the foregoing clauses (a) and (b) in this Section 2.2, are hereinafter individually and/or collectively referred to as the &ldquo;Trademarks&rdquo;);
and (c) all proceeds of any and all of the foregoing, including, without limitation, license royalties and proceeds of the infringement
suits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">2.3&#9;<U>Grant of
Security Interest in Patents</U>. To secure the complete and timely payment, performance and satisfaction of all of the Secured
Obligations, the Grantor hereby grants to the Noteholders, a security interest as and by way of a first lien and security interest
having priority over all of other security interests, including with power of sale to the fullest extent permitted by applicable
law, in all of the Grantor&rsquo;s right, title and interest in and to the Grantor&rsquo;s now owned or otherwise existing and
hereafter acquired or arising: (a) patents and patent applications and (b) all renewals thereof, all income, royalties, damages
and payments now and hereafter due and/or payable under and with respect to thereto, including, without limitation, payments under
all licenses entered into in connection therewith and damages and payments for past or future infringements or dilutions thereof,
the right to sue for past, present and future infringements and dilutions thereof, the goodwill of the Grantor&rsquo;s business
symbolized by the foregoing and connected therewith and all of the Grantor&rsquo;s rights corresponding thereto throughout the
world (all of the foregoing items described in the foregoing clauses (a) and (b) in this Section 2.3, are hereinafter individually
and/or collectively referred to as the &ldquo;Patents&rdquo;); and (c) all proceeds of any and all of the foregoing, including
license royalties and proceeds of the infringement suits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">2.4&#9;<U>Grant of
Security Interest in Trademark and Patent Licenses</U>. To secure the complete and timely payment, performance and satisfaction
of all of the Secured Obligations, the Grantor hereby grants to the Noteholders, a security interest, as and by way of a first
lien and security interest having priority over all of other security interests, including with power of sale to the fullest extent
permitted by applicable law, in all of the Grantor&rsquo;s right, title and interest in and to the Grantor&rsquo;s now owned or
otherwise existing and hereafter acquired or arising: rights under or interests in any license agreements with any other party,
whether the Grantor is a licensee or licensor under any such license agreement, and the right to use the foregoing in connection
with the enforcement of the Noteholders&rsquo; rights under the Notes, including the right to prepare for sale and sell any and
all inventory now or hereafter owned by the Grantor and now or hereafter covered by such licenses (all of the foregoing are hereinafter
referred to collectively as the &ldquo;Licenses&rdquo;). Notwithstanding the foregoing provisions of this Section 2.4, the Licenses
shall not include any license agreement in effect as of the date hereof that by its terms expressly prohibits the grant of the
security contemplated by this Agreement; <U>provided</U>, <U>however</U>, that upon the termination of such prohibitions for any
reason whatsoever, the provisions of this Section 2.4 shall be deemed to apply thereto automatically.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">2.5&#9;<U>Title; Other
Liens</U>. Except for the security interest granted to the holders of the Pari Passu Notes (as defined in the Notes) and the Noteholders
pursuant to this Agreement, the Grantor owns each of the General Assets, Trademarks, Patents and Licenses free and clear of any
and all liens, claims or security or adverse interests to all or any of the Trademarks, Patents and Licenses free on file or of
record in any public office, except as such as have been filed in favor of the holders of Pari Passu Notes and the Noteholders
pursuant to this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>ARTICLE III &ndash; FURTHER ASSURANCES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">3.1&#9;At any time
and from time to time at the request of the Requisite Holders, or if a Collateral Agent has been appointed as provided herein,
the Collateral Agent, the Grantor shall execute and deliver to the Requisite Holders or Collateral Agent, as applicable, all such
financing statements and other instruments and documents in form and substance satisfactory to the Requisite Holders or Collateral
Agent, as applicable, as shall be necessary or desirable to fully perfect, when filed and/or recorded, the security interest in
the Collateral granted to the Noteholders pursuant to <U>Article II</U> of this Agreement. The Grantor hereby authorizes the Requisite
Holders or Collateral Agent, as applicable, without notice to the Grantor, to file any financing statement and amendments thereof
or continuations thereof, naming the Grantor as debtor and the Noteholders as the creditor. At any time and from time to time,
the Requisite Holders or Collateral Agent, as applicable, shall be entitled to file and/or record any or all such financing statements,
instruments and documents held by it, and any or all such further financing statements, documents and instruments, and to take
all such other actions, as the Requisite Holders or Collateral Agent, as applicable, may deem appropriate to perfect and to maintain
perfected the security interest granted to it for the benefit of the Noteholders in <U>Article II</U> of this Agreement. Before
and after the occurrence of any default under the Notes, at the Requisite Holders&rsquo; or Collateral Agent&rsquo;s, as applicable,
request, the Grantor shall execute all such further financing statements, instruments and documents, and shall do all such further
acts and things, as may be deemed necessary or desirable by the Requisite Holders or Collateral Agent, as applicable, to create
and perfect, and to continue and preserve, an indefeasible security interest in the Collateral in favor of the Noteholders or the
priority thereof, including causing any such financing statements to be filed and/or recorded in the applicable jurisdiction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>ARTICLE IV &ndash; SECURITY AGREEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">4.1&#9;<FONT STYLE="font-family: Times New Roman, Times, Serif">This
Agreement secures the payment of all of the Secured Obligations of the Grantor now or hereafter existing under the Notes, whether
for principal, interest, fees, expenses or otherwise, and all of the Secured Obligations of the Grantor now or hereafter existing
under this Agreement and provides for the application of proceeds from the Collateral, upon the occurrence of an Event of Default,
to satisfy the Secured Obligations, including the irrevocable right of the Collateral Agent to apply proceeds from Collateral to
the payment of any and all amounts owing to the Collateral Agent pursuant to any of the provisions of <U>Article X</U> or <U>Article
XIII</U> of this Agreement prior to making any payment to any or all of the Noteholders. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>ARTICLE V &ndash; EVENTS OF DEFAULT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#9;&#9;<FONT STYLE="font-family: Times New Roman, Times, Serif">5.1</FONT>&#9;<FONT STYLE="font-family: Times New Roman, Times, Serif">There
shall be an Event of Default (as defined in the Notes) hereunder upon the occurrence and during the continuance of an Event of
Default under any of the Notes.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>ARTICLE VI &ndash; RIGHTS UPON EVENT
OF DEFAULT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">6.1&#9;Upon the occurrence
and during the continuance of an Event of Default, upon the appointment of the Collateral Agent as set forth herein and in the
Purchase Agreement, the Collateral Agent shall have, in any jurisdiction where enforcement hereof is sought, in addition to all
other rights and remedies that the Collateral Agent may have under applicable law or in equity or under this Agreement, all rights
and remedies of a secured party under the Uniform Commercial Code as enacted in any jurisdiction. Without limiting the foregoing
and subject to the rights of the holders of Pari Passu Notes, and subject to the consent of the Requisite Holders, on behalf of
the Noteholders: (a) without demand of performance or other demand, presentment, protest, advertisement or notice of any kind (except
any notice required by law) to or upon the Grantor or any other person (all of which demands, defenses, advertisements and notices
are hereby waived), may in such circumstances collect, receive, appropriate and realize upon any or all of the Collateral, and/or
may sell, lease, assign, give option or options to purchase, or otherwise dispose of and deliver any or all of the Collateral (or
contract to do any of the foregoing), in one or more parcels at public or private sale or sales, at any exchange, broker&rsquo;s
board or office or elsewhere upon such terms and conditions as the Collateral Agent may deem advisable, for cash or on credit or
for future delivery without assumption of any credit risk; (b) shall have the right upon any such public sale or sales, and, to
the extent permitted by law, upon any such private sale or sales, to purchase all or any part of the Collateral so sold, free of
any right or equity of redemption in the Grantor, which right or equity is hereby waived or released; and (c) shall apply the net
proceeds of any such collection, recovery, receipt, appropriation, realization or sale, after deducting all reasonable expenses
incurred therein or in connection with the care or safekeeping of any of the Collateral or in any way relating to the Collateral
or the rights of the Noteholders under this Agreement (including, without limitation, reasonable attorneys&rsquo; fees and expenses)
to the payment in whole or in part of the Secured Obligations, in such order as the Collateral Agent may elect, and only after
such application and after the payment by the Collateral Agent of any other amount required by any provision of law, need the Collateral
Agent account for the surplus, if any, to the Grantor. If any notice of a proposed sale or other disposition of Collateral shall
be required by law, such notice shall be deemed reasonable and proper if given at least ten (10) days before such sale or other
disposition. The Grantor shall remain liable for any deficiency if the proceeds of any sale or other disposition of the Collateral
are insufficient to pay the Secured Obligations and the reasonable fees and disbursements of any attorneys employed by the Collateral
Agent to collect such deficiency.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>ARTICLE VII &ndash; VOTING RIGHTS; DIVIDENDS;
ETC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#9;7.1&#9;With respect to Grantor&rsquo;s
right, title and interest to any Collateral consisting of securities, partnership interests, joint venture interests, investments
or the like (referred to collectively and individually in this <U>Article VII</U> and in <U>Article VIII</U> hereof as the &ldquo;Investment
Collateral&rdquo;), so long as no Event of Default occurs and remains continuing:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(a)&#9;the
Grantor shall be entitled to exercise any and all voting and other consensual rights pertaining to the Investment Collateral, or
any part thereof, for any purpose not inconsistent with the terms of this Agreement or the Notes; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(b)&#9;the
Grantor shall be entitled to receive and to retain and use any and all dividends or distributions paid in respect of the Investment
Collateral.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>ARTICLE VIII &ndash; RIGHTS DURING EVENT
OF DEFAULT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">8.1&#9;With respect
to any Investment Collateral in the possession of the Grantor, so long as an Event of Default has occurred and is continuing and
subject to the rights of the holders of the Pari Passu Notes:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&#9;(a)&#9;at
the option of the Collateral Agent, all rights of the Grantor to exercise the voting and other consensual rights which it would
otherwise be entitled to exercise pursuant to Section (a) of <U>Article VII</U> hereof, and to receive the dividends and distributions
which it would otherwise be authorized to receive and retain pursuant to Section (b) of <U>Article VIII</U> hereof, shall cease,
and all such rights thereupon shall become vested in the Collateral Agent for the benefit of the Noteholders which thereupon shall
have the sole right to exercise such voting and other consensual rights and to receive and to hold as pledged Investment Collateral
such dividends and distributions; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&#9;(b)&#9;all
dividends and other distributions that are received by the Grantor contrary to the provisions of this Agreement shall be held in
trust for the benefit of the Collateral Agent on behalf of the Noteholders, shall be segregated from other funds of the Grantor
and forthwith shall be paid over to Collateral Agent for the benefit of the Noteholders as pledged Collateral in the same form
as so received (with any necessary endorsements).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>ARTICLE IX &ndash; GENERAL REPRESENTATIONS,
WARRANTIES AND COVENANTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">9.1&#9;The Grantor
represents, warrants and covenants, which representations, warranties and covenants shall survive execution and delivery of this
Agreement, as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(a)&#9;except
for the security interest granted to the holders of the Pari Passu Notes and the Noteholders herein, the Grantor is, and as to
Collateral acquired from time to time after the date hereof, the Grantor will be, the owner of all the Collateral free from any
lien, security interest, encumbrance or other right, title or interest of any person, and the Grantor shall defend the Collateral
against all claims and demands of all persons at any time claiming the same or any interest therein adverse to the Collateral Agent
for the benefit of the Noteholders;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(b)&#9;other
than as relate to the Pari Passu Notes, there is no financing statement (or similar statement or instrument of registration under
the law of any jurisdiction) now on file or registered in any public office covering any interest of any kind in the Collateral,
or intended to cover any such interest that has not been terminated or released by the secured party named therein, and so long
as any Notes remain outstanding or any of the Secured Obligations of the Grantor remain unpaid, other than as relate to the Pari
Passu Notes the Grantor will not execute and there will not be on file in any public office any financing statement (or similar
statement or instrument of registration under the law of any jurisdiction) or statements relating to the Collateral, except financing
statements filed or to be filed in respect of and covering the security interest hereby granted to the Collateral Agent for the
benefit of the Noteholders;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(c) &#9;at
the Grantor&rsquo;s own expense, the Grantor will keep the Collateral (i) in good condition at all times (normal wear and tear
excepted) and maintain same in accordance with all manufacturer&rsquo;s specifications and requirements, and (ii) free and clear
of all liens and encumbrances, except for the liens granted to the holders of the Pari Passu Notes and those granted hereby; and
without the consent of the Collateral Agent, the Grantor will not sell, transfer, change the registration, if any, dispose of,
attempt to dispose of, substantially modify or abandon the Collateral or any part thereof other than sales of inventory in the
ordinary course of business and the disposition of obsolete or worn-out equipment in the ordinary course of business; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(d) &#9;the
chief executive office and chief place of business of the Grantor is located at 2101 Vista Parkway, Suite 122, West Palm Beach,
FL 33411. The Grantor will not move its chief executive office and chief place of business until (i) it shall have given to the
Noteholders, of if a Collateral Agent has been appointed hereunder, the Collateral Agent, not less than 30 days&rsquo; prior written
notice of its intention to do so, clearly describing such new location and providing such other information in connection therewith
as the Requisite Holders or Collateral Agent, as applicable, may reasonably request, and (ii) with respect to such new location,
it shall have taken such action, satisfactory to the Requisite Holders or Collateral Agent, as applicable, to maintain the security
interest of the Noteholders in the Collateral<FONT STYLE="text-underline-style: double; color: blue"><U>.</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ARTICLE X &ndash;COSTS AND EXPENSES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">10.1&#9; The Grantor
shall pay any and all reasonable costs and expenses incurred by the Collateral Agent, including, without limitation, reasonable
costs and expenses relating to all waivers, releases, discharges, satisfactions, modifications and amendments of this Agreement,
the administration and holding of the Collateral, insurance expenses, and the enforcement, protection and adjudication of the parties&rsquo;
rights hereunder by the Collateral Agent, including, without limitation, the reasonable disbursements, expenses and fees of the
attorneys the Collateral Agent may retain, if any.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">10.2&#9;All advances,
charges, costs and expenses, including reasonable attorneys' fees and disbursements (collectively, &ldquo;Costs and Expenses&rdquo;),
incurred or paid by the Collateral Agent in exercising any right, privilege, power or remedy conferred by this Agreement or in
the enforcement or attempted enforcement thereof, shall be secured hereby and shall become a part of the Secured Obligations and
shall be paid to the Collateral Agent by the Grantor. To the extent that the Costs and Expenses are not paid promptly by the Grantor,
the Collateral Agent may request each Noteholder to deposit with it, in proportion to their initially purchased respective principal
amounts of Notes, sufficient sums to cover the Costs and Expenses. To the extent Costs and Expenses are not paid to the Collateral
Agent by the Grantor or the Noteholders, the Collateral Agent, in addition to any other rights granted under this Agreement, is
hereby authorized to deduct the aggregate of unpaid Costs and Expenses from the Collateral or proceeds therefrom.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>ARTICLE XI &ndash; CONTINUING EFFECT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">11.1&#9;This Agreement
shall remain in full force and effect and continue to be effective should any petition be filed by or against the Grantor for liquidation
or reorganization, should the Grantor become insolvent or make an assignment for the benefit of creditors or should a receiver
or trustee be appointed for all or any significant part of the Grantor&rsquo;s assets, and shall continue to be effective or be
reinstated, as the case may be, if at any time payment and performance of the Secured Obligations, or any part thereof, is, pursuant
to applicable law, rescinded or reduced in amount, or must otherwise be restored or returned by the Collateral Agent, whether as
a &ldquo;voidable preference,&rdquo; &ldquo;fraudulent conveyance&rdquo; or otherwise, all as though such payment or performance
had not been made. In the event that any payment or any part thereof is rescinded, reduced, restored or returned, the Secured Obligations
shall be reinstated and deemed reduced only by such amount paid and not so rescinded, reduced, restored or returned.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>ARTICLE XII &ndash; TERMINATION; RELEASE
OF THE GRANTOR</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">12.1&#9;This Agreement
shall be terminated and all Secured Obligations of the Grantor hereunder shall be released when all Secured Obligations of the
Grantor have been paid in full or upon such release of the Grantor's Secured Obligations hereunder or, with respect to any Note,
when such Note shall no longer be outstanding. Upon such termination, the Collateral Agent shall return any pledged Collateral
to the Grantor, or to the person or persons legally entitled thereto, and shall endorse, execute, deliver, record and file all
instruments and documents, and do all other acts and things reasonably required for the return of the Collateral to the Grantor,
or to the person or persons legally entitled thereto, and to evidence or document the release of the Collateral Agent's interests
arising for the benefit of the Noteholders under this Agreement, all as reasonably requested by, and at the sole expense of, the
Grantor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>ARTICLE XIII &ndash; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>COLLATERAL AGENT&rsquo;S APPOINTMENT
AS ATTORNEY-IN-FACT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">13.1&#9;<U>Powers</U>.<B>
</B>Upon the occurrence of an Event of Default, the Grantor hereby authorizes and empowers the Requisite Holders to appoint a Collateral
Agent, and any officer or agent of the Collateral Agent, with full power of substitution, as its attorney-in-fact with full irrevocable
power and authority in the place of the Grantor and in the name of the Grantor or in its own name, from time to time in the Collateral
Agent&rsquo;s discretion so long as an Event of Default has occurred and is continuing, for the purpose of carrying out the terms
of this Agreement, to take any and all appropriate action and to execute any instrument which may be necessary or desirable to
accomplish the purposes of this Agreement. Upon such appointment, Collateral Agent will execute a Joinder Agreement, substantially
in the form annexed hereto as Exhibit A, pursuant to which Collateral Agent shall become a party to this Agreement and shall be
fully bound by, and subject to, all of the terms and conditions that are applicable to Collateral Agent as stated herein. Except
with respect to those matters as to which the Collateral Agent is expressly required to act under the terms of this <U>Article
XIII</U>, the Collateral Agent may act or refrain from acting with the written consent of Requisite Holders, which Requisite Holders
shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Collateral
Agent; <U>provided</U>, <U>however</U>, that such direction shall not be in conflict with any rule of law or expose the Collateral
Agent to personal liability and the Collateral Agent may take any action deemed proper by the Collateral Agent, in its discretion,
which is not inconsistent with such direction or the terms of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Without limiting the
foregoing, so long as an Event of Default has occurred and is continuing and provided that the Collateral Agent has received instructions
from the Requisite Holders, subject to the prior rights of the Pari Passu Notes, the Collateral Agent shall have the right, without
notice to, or the consent of, the Grantor, to do any of the following on the Grantor&rsquo;s behalf:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(a)&#9;to pay or discharge
any taxes or liens levied or placed on or threatened against the Collateral;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(b)&#9;to direct any
party liable for any payment under any of the Collateral to make payment of any and all amounts due or to become due thereunder
as the Collateral Agent direct;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(c)&#9;to ask for or
demand, collect, and receive payment of and receipt for, any payments due or to become due at any time in respect of or arising
out of any Collateral;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(d)&#9;to commence and
prosecute any suits, actions or proceedings at law or in equity in any court of competent jurisdiction to enforce any right in
respect of any Collateral;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(e)&#9;to defend any
suit, action or proceeding brought against the Grantor with respect to any Collateral;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(f)&#9;to settle, compromise
or adjust any suit, action or proceeding described in subsection&nbsp;(e) above and, to give such discharges or releases in connection
therewith as the Collateral Agent may deem appropriate;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(g)&#9;to assign any
Patent right included in the Collateral of Grantor (along with the goodwill of the business to which any such patent right pertains),
throughout the world for such term or terms, on such conditions, and in such manner, as the Collateral Agent shall in its sole
discretion determine; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(h)&#9;generally, to
sell, transfer, pledge and make any agreement with respect to or otherwise deal with any of the Collateral, and to take, at the
Collateral Agent&rsquo;s option and the Grantor&rsquo;s expense, any actions which the Collateral Agent deems necessary to protect,
preserve or realize upon the Collateral and the Noteholders&rsquo; liens on the Collateral and to carry out the intent of this
Agreement, in each case to the same extent as if the Collateral Agent were the absolute owner of the Collateral for all purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">13.2&#9;All acts done
under the foregoing authorization are hereby ratified and approved.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">13.3&#9;Each Noteholder
agrees with all other Noteholders and the Collateral Agent (i) that it shall not, and shall not attempt to, exercise any rights
with respect to its security interest in the Collateral, other than pursuant to this Agreement, or take or institute any action
against the Collateral Agent or any of the other Noteholders in respect of the Collateral or its rights hereunder (other than any
such action arising from the breach of this Agreement) and (ii) that such Noteholder has no other rights with respect to the Collateral
other than as set forth in this Agreement and the other transaction documents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>ARTICLE XIV &ndash; COLLATERAL AGENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">14.1&#9;By their execution
of the Omnibus Signature Page to the Purchase Agreement and this Agreement, each of the Noteholders have agreed to appoint a Collateral
Agent upon an Event of Default and hereby authorize the Collateral Agent to exercise for the benefit of the Noteholders all rights,
powers and remedies provided to it under or pursuant to this Agreement, including all rights, powers and remedies upon an Event
of Default, subject always to the terms, conditions, limitations and restrictions provided in this Agreement. Except with respect
to those matters as to which the Collateral Agent is expressly required to act under the terms of this Article XIV, the Collateral
Agent may act or refrain from acting with the written consent of the Requisite Holders, which Requisite Holders shall have the
right to direct the time, method and place of conducting any proceeding for any remedy available to the Collateral Agent; <U>provided</U>,
<U>however</U>, that such direction shall not be in conflict with any rule of law or expose the Collateral Agent to personal liability,
and the Collateral Agent may take any action deemed proper by the Collateral Agent, in its discretion, which is not inconsistent
with such direction or the terms of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">14.2&#9;The Collateral
Agent shall have no duties or responsibilities except those expressly set forth in this Agreement. Neither the Collateral Agent
nor any of its partners, members, shareholders, officers, directors, employees or agents shall be liable for any action taken or
omitted by it as such under the Agreement or hereunder or in connection herewith or therewith, be responsible for the consequence
of any oversight or error of judgment or answerable for any loss, unless caused by its or their gross negligence or willful misconduct
as determined by a final judgment (not subject to further appeal) of a court of competent jurisdiction. The duties of the Collateral
Agent shall be mechanical and administrative in nature; the Collateral Agent shall not have by reason of the Agreement or any other
transaction document a fiduciary relationship in respect of any Grantor or any Noteholder; and nothing in the Agreement or any
other transaction document, expressed or implied, is intended to or shall be so construed as to impose upon the Collateral Agent
any obligations in respect of the Agreement or any other transaction document except as expressly set forth herein and therein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">14.3. The Collateral
Agent shall not be responsible to the Grantor or any Noteholder for any recitals, statements, information, representations or warranties
herein or in any document, certificate or other writing delivered in connection herewith, or for the execution, effectiveness,
genuineness, validity, enforceability, perfection, collectability, priority or sufficiency of the Agreement or any other transaction
document, or for the financial condition of the Grantor or the value of any of the Collateral, or be required to make any inquiry
concerning either the performance or observance of any of the terms, provisions or conditions of the Agreement or any other transaction
document, or the financial condition of the Grantor, or the value of any of the Collateral, or the existence or possible existence
of any default or Event of Default under the Agreement, the Notes or any of the other transaction documents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">14.4.&#9; The Collateral
Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing, resolution, notice, statement, certificate,
telex, teletype or telecopier message, cablegram, radiogram, order or other document or telephone message signed, sent or made
by the proper person or entity, and, with respect to all legal matters pertaining to the Agreement and the other transaction documents
and its duties thereunder, upon reasonable advice of counsel selected by it and upon all other matters pertaining to this Agreement
and the other transaction documents and its duties thereunder, upon advice of other experts selected by it. Anything to the contrary
notwithstanding and until such time as the Collateral Agent takes any action upon the instructions of the Requisite Holders, the
Collateral Agent shall have no obligation whatsoever to any Noteholder to assure that the Collateral exists or is owned by the
Grantor or is cared for, protected or insured or that the liens granted pursuant to the Agreement have been properly or sufficiently
or lawfully created, perfected, or enforced or are entitled to any particular priority.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">14.5. Notwithstanding
anything in this Agreement to the contrary, none of the provisions of this Agreement shall be construed to require the Collateral
Agent to expend or risk its own funds or otherwise incur any liability (financial or otherwise) in the performance of any of its
duties hereunder, or in the exercise of any of its rights or powers if it shall have reasonable grounds for believing that repayment
of such funds or indemnification satisfactory to it against such risk or liability is not assured to it. In no event shall the
Collateral Agent be liable (a)&nbsp;for any consequential, punitive or special damages or (b)&nbsp;for the acts or omissions of
its nominees, correspondents, designees, subagents or subcustodians. The Collateral Agent shall not incur any liability for not
performing any act or fulfilling any duty, obligation or responsibility hereunder by reason of any occurrence beyond the control
of the Collateral Agent (including any act or provision of any present or future law or regulation or governmental authority, any
act of God or war, or the unavailability of the Federal Reserve Bank wire or telex or other wire or communication facility).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">14.6&#9;The Collateral
Agent shall not be required or bound to make any investigation into the facts or matters stated in any resolution, certificate,
statement, instrument, opinion, report, notice, request, consent, entitlement order, approval or other paper or document. The Collateral
Agent may execute any of the powers under this Agreement or perform any duties hereunder either directly or by or through agents,
attorneys, custodians or nominees appointed with due care, and shall not be responsible or liable for the acts or omissions, including
any willful misconduct or gross negligence, on the part of any agent, attorney, custodian or nominee so appointed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#9;14.7&#9;The Grantor agrees to be responsible
to indemnify and hold the Collateral Agent and its directors, employees, officers, agents, successors and assigns harmless from
and against any and all losses, claims, damages, liabilities and expenses, including reasonable costs of investigation and reasonable
counsel fees and expenses that may be imposed on the Collateral Agent or incurred by it in connection with its acceptance of its
appointment as the Collateral Agent hereunder or the performance of its duties hereunder, except as a result of the Collateral
Agent&rsquo;s gross negligence or willful misconduct. Such indemnity includes all losses, damages, liabilities and expenses (including
reasonable counsel fees and expenses) incurred in connection with any litigation (whether at the trial or appellate levels) arising
from this Agreement or involving the subject matter hereof. The indemnification provisions contained in this Section 14.7 are in
addition to any other rights any of the indemnified parties may have by law or otherwise and shall survive the termination of this
Agreement or the resignation or removal of the Collateral Agent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#9;14.8&#9;Any corporation or other entity
whatsoever into which the Collateral Agent may be merged or converted or with which it may be consolidated, any corporation or
other entity whatsoever resulting from any merger, conversion or consolidation to which the Collateral Agent shall be a party or
any corporation or other entity whatsoever succeeding to the business of the Collateral Agent shall be the successor of the Collateral
Agent hereunder without the execution or filing of any paper with any party hereto except where an instrument of transfer or assignment
is required by law to effect such succession.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">14.9&#9;The Collateral
Agent may generally engage in any kind of business with any Noteholder as if it had not entered into this Agreement. The Collateral
Agent and its affiliates and their officers, directors, employees, and agents (including legal counsel) may hereafter be engaged
in one or more transactions with any Noteholder or may act as trustee, agent or representative of any Noteholder, or otherwise
be engaged in other transactions with such parties (collectively, the &ldquo;<U>Other Activities</U>&rdquo;). Without limiting
the forgoing, Collateral Agent and its affiliates and their officers, directors, employees, and agents (including legal counsel)
shall not be responsible to account to any Noteholder for such other activities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">14.10&#9;The Collateral
Agent may resign and be discharged of its duties hereunder at any time by giving written notice of such resignation to the other
parties hereto, stating the date such resignation is to take effect. Within twenty (20) days of the giving of such notice, a successor
collateral agent shall be appointed by the Requisite Holders; <U>provided</U>, <U>however</U>, that if the Noteholders are unable
so to agree upon a successor within such time period, and notify the Collateral Agent during such period of the identity of the
successor collateral agent, the successor collateral agent may be a person designated by the Collateral Agent, and any and all
fees of such successor collateral agent shall be the joint and several obligation of the Noteholders. The Collateral Agent shall
continue to serve until the effective date of the resignation or until its successor accepts the appointment and receives the Collateral
held by the Collateral Agent but shall not be obligated to take any action hereunder. The Collateral Agent may deposit any Collateral
with the Supreme Court of the State of New York for New York County or any such other court in New York State that accepts such
Collateral. Upon the acceptance of any appointment as Collateral Agent hereunder by a successor collateral agent, such successor
Collateral Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring
agent and the retiring agent shall be discharged from its duties and obligations under the Agreement.&nbsp; After any retiring
agent&rsquo;s resignation or removal hereunder as agent, the provisions of the Agreement shall inure to its benefit as to any actions
taken or omitted to be taken by it while it was agent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>ARTICLE XV &ndash; GOVERNING LAW</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">15.1&#9;THIS AGREEMENT
SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS TO
BE PERFORMED WHOLLY WITHIN SUCH JURISDICTION.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>ARTICLE XVI &ndash; ASSIGNMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">16.1&#9;This Agreement
shall create a continuing security interest in the Collateral and shall be binding upon the Grantor and the Grantor&rsquo;s successors
and assigns; inure, together with the rights and remedies of the Collateral Agent hereunder, in favor of the Noteholders and their
successors, transferees and assigns; and be severable in the event that one or more of the provisions herein is determined to be
illegal or unenforceable. Without limiting the generality of the foregoing, the Noteholders may assign or otherwise transfer any
portion of their Notes, in accordance with the terms of the Notes, to any other person or entity, and such other person or entity
shall thereupon become vested with all the benefits and obligations in respect thereof granted to the Noteholders (including the
beneficial interest in the rights and benefits granted to the Collateral Agent for the benefit of the Noteholders) herein or otherwise.
The Grantor shall promptly provide the Collateral Agent with notice of any such assignment or transfer of a Note by any Noteholder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>ARTICLE XVII &ndash; AMENDMENT </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#9;17.1&#9;The terms of this Agreement
may be amended only with the written consent of the Requisite Holders and the written consent of the Collateral Agent, if any.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>ARTICLE XVIII</B>-<B>MISCELLANEOUS</B>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">18.1 No course of dealing
between the Grantor and the Noteholders, nor any failure to exercise, nor any delay in exercising, on the part of the Noteholders,
any right, power or privilege hereunder or under the Notes shall operate as a waiver thereof; nor shall any single or partial exercise
of any right, power or privilege hereunder or thereunder preclude any other or further exercise thereof or the exercise of any
other right, power or privilege.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">18.2 All of the rights
and remedies of the Noteholders with respect to the Collateral, whether established hereby or by the Notes or by any other agreements,
instruments or documents or by law shall be cumulative and may be exercised singly or concurrently.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">18.3. If any term,
provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void
or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force
and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable
efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such
term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would
have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared
invalid, illegal, void or unenforceable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">18.4 No waiver of any
default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in
the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall
any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">18.5.&#9;The Noteholders,
Grantor and Collateral Agent agree that all proceedings concerning the interpretations, enforcement and defense of the transactions
contemplated by this Agreement (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders,
partners, members, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New
York, Borough of Manhattan. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts
sitting in the City of New York, Borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith or
with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any proceeding,
any claim that it is not personally subject to the jurisdiction of any such court, that such proceeding is improper. Each party
hereto hereby irrevocably waives personal service of process and consents to process being served in any such proceeding by mailing
a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address
in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process
and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted
by law. Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial
by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">18.6 This Agreement
may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and, all of which
taken together shall constitute one and the same Agreement. In the event that any signature is delivered by facsimile transmission,
such signature shall create a valid binding obligation of the party executing (or on whose behalf such signature is executed) the
same with the same force and effect as if such facsimile signature were the original thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; color: blue"><FONT STYLE="color: Black">18.7&#9;Nothing
in this Agreement shall be construed to subject Collateral Agent or any Noteholder to liability as a partner in Grantor or any
if its direct or indirect subsidiaries that is a partnership or as a member in Grantor or any of its direct or indirect subsidiaries
that is a limited liability company, nor shall Collateral Agent or any Noteholder be deemed to have assumed any obligations under
any partnership agreement or limited liability company agreement, as applicable, of any such Grantor or any of its direct or indirect
subsidiaries or otherwise, unless and until any such Noteholder exercises its right to be substituted for such Grantor as a partner
or member, as applicable, pursuant hereto.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; color: blue"><FONT STYLE="text-underline-style: double">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">18.9 Any notice or
other communication under the provisions of this Agreement shall be given in writing and delivered in person, by reputable overnight
courier or delivery service, by facsimile machine (receipt confirmed) with a copy sent by first class mail on the date of transmissions,
or by registered or certified mail, return receipt requested, directed to such party&rsquo;s addresses set forth below (or to any
new address of which any party hereto shall have informed the others by the giving of notice in the manner provided herein):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">In the case
of the Collateral Agent, to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">To the address and telecopier number
provided by the Collateral Agent to the Grantor upon his, her or its appointment</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">In the case of the Noteholder,
to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">To the address and telecopier
number set forth on</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">the Omnibus signature
page to the Purchase Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">In the case of Grantor,
to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">BeesFree,
Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">2101 Vista
Parkway, Suite 122</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">West Palm
Beach, FL 33411&#9;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">Attn: CEO</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">Telecopy
No.: (561) 939-4861</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: left; text-indent: 0.5in">&#9;&#9;With a copy (that shall not constitute
notice) to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: left; text-indent: 0.5in">Steven D. Uslaner,
Esq.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: left; text-indent: 0.5in">Littman Krooks,
LLP</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: left; text-indent: 0.5in">655 Third Avenue,
20<SUP>th</SUP> Floor</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: left; text-indent: 0.5in">New York, NY
10017</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">Telecopy No.: <FONT STYLE="color: Black">(212<FONT STYLE="text-underline-style: double"><U>)
490-2990</U></FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 1in 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>[Remainder of page intentionally left
blank]</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>IN WITNESS WHEREOF,</B>
the undersigned have executed this Security Agreement by its duly authorized officer as of the date first written above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.5in; text-align: justify"><B>BEESFREE, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.5in; text-align: justify"><BR>
<BR>
By: <U>/S/ JOSEPH FASCIGLIONE&#9;</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.5in; text-align: justify">Name: Joseph Fasciglione</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.5in; text-align: justify">Title: Interim Chief Financial
Officer</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.5in; text-align: justify"><BR>
<B>BEESFREE USA, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.5in; text-align: justify"><BR>
<BR>
By: <U>/S/ JOSEPH FASCIGLIONE&#9;</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.5in; text-align: justify">Name: Joseph Fasciglione</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.5in; text-align: justify">Title: President</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.5in; text-align: justify"><B>NOTEHOLDERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2in; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.5in; text-align: justify">See Omnibus Signature Page to Purchase
Agreement for Noteholders&rsquo; Signatures</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-align: left">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>EXHIBIT A</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>BEESFREE, INC. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>JOINDER AGREEMENT AND SIGNATURE PAGE
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>TO SECURITY AGREEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This JOINDER AGREEMENT
AND SIGNATURE PAGE is entered into as of ____________ ___ 201__, by ____________________________________ (the &ldquo;<U>Collateral
Agent</U>&rdquo;), for the purpose of becoming a party to that certain Security Agreement, dated December 31, 2013, by and among
BeesFree, Inc., a Nevada corporation, BeesFree USA, Inc., a Delaware corporation, and the investor signatories thereto (the &ldquo;Noteholders&rdquo;)
(the &ldquo;<U>Security Agreement</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">NOW, THEREFORE, in
consideration of the mutual covenants and agreements contained herein and other good and valuable consideration, the parties have
agreed as follows (with all capitalized terms not otherwise defined herein having the meaning ascribed to them in the Security
Agreement):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">1.</TD><TD STYLE="text-align: justify">By executing and delivering this Joinder Agreement and Signature Page, and having been appointed
to serve as Collateral Agent by the Requisite Holders, the Collateral Agent acknowledges that Collateral Agent is now a party to
the Security Agreement and agrees and acknowledges that as such will be subject to the terms, conditions and obligations of the
Security Agreement relating to its duties as Collateral Agent for the benefit of the Noteholders.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">2.</TD><TD STYLE="text-align: justify">The Collateral Agent represents and warrants that the Collateral Agent has reviewed, understands
and agrees to the terms of the Security Agreement and that by signing this Agreement the Collateral Agent agrees to be, and shall
be, bound by the provisions of the Security Agreement, and shall be a party to the Security Agreement as Collateral Agent, and
shall have the rights and obligations as set forth therein<I>.</I></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">3.</TD><TD STYLE="text-align: justify">This Joinder shall be binding upon and enforceable by the Company, BeesFree DE, the Noteholders
and Collateral Agent and their respective successors, heirs and assigns.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">4.</TD><TD STYLE="text-align: justify">This Joinder may be executed in separate counterparts each of which shall be an original and all
of which taken together shall constitute one and the same agreement.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">5.</TD><TD STYLE="text-align: justify">This Agreement shall be construed in accordance with and governed by the law of the State of New
York (without regard to choice of law provisions thereof).</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Collateral Agent agrees that this signature
page may be attached to any counterpart of the Security Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I><U>[</U>Signature Page to Follow<U>]</U></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><B>IN WITNESS WHEREOF</B>,
the undersigned hereby executes the Joinder Agreement as of the date first above written.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.5in; text-align: justify">&#9;_______________________<U>&#9;</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.5in; text-align: justify">Name:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.5in; text-align: justify">Title:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.5in; text-align: justify">Accepted:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.5in; text-align: justify"><B>BEESFREE,
INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.5in; text-align: justify"><BR>
<BR>
By: ___________________________</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.5in; text-align: justify">Name:<BR>
Title:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.5in; text-align: justify"><BR>
<B>BEESFREE USA, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.5in; text-align: justify"><BR>
<BR>
By: ___________________________</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.5in; text-align: justify">Name:<BR>
Title:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>4
<FILENAME>v364595_ex10-3.htm
<DESCRIPTION>EXHIBIT 10.3
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
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<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin-top: 0; text-align: center; margin-bottom: 0">&nbsp;</P>

<P STYLE="margin-top: 0; text-align: center; margin-bottom: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>15% SENIOR SECURED CONVERTIBLE NOTE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.5in; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.5in; text-align: justify">THIS NOTE AND THE SECURITIES OBTAINABLE
UPON CONVERSION HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (&ldquo;THE ACT&rdquo;), OR THE SECURITIES
LAWS OF ANY STATE. THE SECURITIES MAY NOT BE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT
AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN APPLICABLE EXEMPTION FROM OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE
TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">15% SENIOR
SECURED CONVERTIBLE NOTE</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 52%; padding-right: 5.4pt; padding-left: 0; font-size: 10pt">No. BEES -[&nbsp;&nbsp;&nbsp;]</TD>
    <TD STYLE="width: 48%; padding-right: -0.9pt; padding-left: 5.4pt; font-size: 10pt; text-align: right">December 31, 2013</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 0; font-size: 10pt">U.S. $ _____________</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">FOR VALUE RECEIVED,
the undersigned, BeesFree, Inc., a Nevada corporation (the &ldquo;Company&rdquo;), hereby unconditionally promises to pay ____________________
(the &ldquo;Holder&rdquo;), on the Maturity Date (as defined in <U>Section 1</U> hereof, unless otherwise converted pursuant to
<U>Section 3</U> hereof) to the order of the Holder, in lawful money of the United States of America and in immediately available
funds, the principal amount of _____________________ ($________) Dollars (the &ldquo;Principal Amount&rdquo;). Interest shall accrue
the rate of 15% per annum (&ldquo;Interest&rdquo;) based on a 360 day year, shall compound quarterly and shall be payable on the
Maturity Date (as defined below) or converted pursuant to Section 3 hereof. The Company shall be entitled to prepay this Note at
any time prior to the Maturity Date by providing holder no less than 30 days prior notice of such prepayment. Holder may elect
to convert all or a portion of the Principal Amount and accrued Interest in accordance with the provisions of Section 3 hereof
prior to prepayment. Any prepayment made by Company will be applied first toward accrued Interest and once the Interest is fully
paid, towards the Principal Amount.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This Note is one of
a series of 15% senior secured convertible notes of like tenor and ranking made by the Company in favor of certain investors and
issued, from time to time (collectively, the &ldquo;Notes&rdquo;), pursuant to that certain Securities Purchase Agreement by and
between the Company and certain investors, including the Holder, dated as of December 31, 2013, including all attachments, schedules
and exhibits thereto (the &ldquo;Securities Purchase Agreement&rdquo;). Capitalized terms used and not otherwise defied herein
shall have the meanings set forth in the Securities Purchase Agreement. Each of the Notes shall rank equally without preference
or priority of any kind over one another, and all payments on account of Principal Amount and Interest with respect to any of the
Notes shall be applied ratably and proportionately on the outstanding Notes on the basis of the Principal Amount of the outstanding
indebtedness represented thereby.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">1.&#9;</FONT><U>Maturity;
Acceleration</U>. Unless otherwise converted in accordance with the provisions of Section 3, this Note shall mature on December
31, 2015 <B> </B>(such date, the &ldquo;Maturity Date&rdquo;). On the Maturity Date, unless, and to the extent, previously converted
in accordance with the provisions of Section 3 hereof, any and all outstanding Principal Amount and accrued and unpaid Interest
due and owing under the Note shall be immediately paid by the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">2.&#9;</FONT><U>Seniority;
Security Interest</U>.&nbsp; (a) The indebtedness evidenced by this Note and the payment of the Principal Amount and Interest shall
be Senior (as hereinafter defined) to, and have priority in right of payment over, all indebtedness of Company, other than the
Company&rsquo;s existing secured indebtedness in the principal amount of $735,000, which will rank pari passu with the Notes (the
&ldquo;Pari Passu Notes&rsquo;).&nbsp; &ldquo;Senior,&rdquo; as used herein, shall be deemed to mean that, in the event of any
default in the payment of the obligations represented by this Note (after giving effect to &ldquo;cure&rdquo; provisions, if any)
or of any liquidation, insolvency, bankruptcy, reorganization or similar proceedings relating to the Company, all sums payable
on this Note shall first be paid in full, with Interest, if any, along with the sums payable on the Pari Passu Notes, before any
payment is made upon any other indebtedness now outstanding or hereinafter incurred.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b) This Note is secured
by a second lien and security interest in all of the assets of the Company and its wholly-owned subsidiary, BeesFree USA, Inc.
(&ldquo;Subsidiary&rdquo;) pursuant to the terms of a certain Security Agreement dated as of December 31, 2013 (the &ldquo;Security
Agreement&rdquo;), by the Company in favor of the Holders. By its execution of the Securities Purchase Agreement, the Holder has
authorized the Requisite Holders (as defined herein) to appoint a collateral agent to act on behalf of the Holder and other holders
of the Notes (the &ldquo;Agent&rdquo;), and in such capacity to enter into the Security Agreement, as the same may be amended,
modified, restated or supplemented from time to time, and to exercise for the benefit of the Holder and other holders of the Notes
all rights, powers and remedies provided to it, under or pursuant to the Security Agreement including, without limitation, those
available upon an Event of Default (as defined in Section 4 hereof).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">3.&#9;</FONT><U>Conversion</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(a)&#9;</FONT><U>Conversion
Price and Optional Conversion</U>. The Holder shall have the right, at its option, to convert all or a portion of the Principal
Amount and accrued Interest of this Note into shares of the Company&rsquo;s Common Stock (the &ldquo;Conversion Shares&rdquo;)
at a conversion price equal to $1.00 per share (the &ldquo;Conversion Price&rdquo;), subject to adjustment as set forth in Section
8). The Holder shall exercise its right to convert this Note by delivering to the Company a written notice setting forth its election
to convert (a &ldquo;Conversion Notice&rdquo;) in the form attached hereto as <U>Exhibit A</U> and surrendering this Note. Upon
receipt of the Conversion Notice and the surrender of this Note, the Company shall issue and cause to be delivered with all reasonable
dispatch to or upon the written order of the Holder, and in such name or names as the Holder may designate, a certificate or certificates
for the full number of Conversion Shares so converted upon conversion of this Note. Such certificate or certificates shall be deemed
to have been issued and any person so designated to be named therein shall be deemed to have become a holder of record of such
securities as of the date of delivery of the Conversion Notice, notwithstanding that the certificate or certificates representing
such securities shall not actually have been delivered or that the stock transfer books of the Company shall then be closed. In
the event that the Principal Amount of this Note exceeds the amount being converted, the Company shall, upon such conversion execute
and deliver to the Holder a new Note for the Principal Amount of this Note surrendered which is not being converted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(b)&#9;</FONT><U>Delivery
of Stock Certificates, etc. on Conversion</U>. The Company agrees that, upon receipt of the Conversion Notice as specified in <U>Section
3(a)</U> above, the Conversion Shares issueable upon conversion of this Note shall be deemed to be issued to the Holder hereof
as the record owner of such shares as of the close of business on the date on which delivery of the Conversion Notice shall have
occurred. As soon as practicable after the conversion of this Note in full or in part, and in any event within five (5) business
days thereafter (&ldquo;<B>Conversion Share Delivery Date</B>&rdquo;), the Company at its expense (including the payment by it
of any applicable issue taxes) will cause to be issued in the name of and delivered to the Holder hereof, or as such Holder (upon
payment by such Holder of any applicable transfer taxes) may direct in compliance with applicable securities laws, a certificate
or certificates for the number of duly and validly issued, fully paid and non-assessable shares of Common Stock to which such Holder
shall be entitled on such conversion, together with any other stock or other securities and property (including cash, where applicable)
to which such Holder is entitled upon such exercise pursuant to Section&nbsp;3(a) or otherwise. No fractional shares of Common
Stock will be issued in connection with any exercise hereof, but in lieu of such fractional shares, the Company shall round the
number of shares to be issued upon exercise up to the nearest whole number of shares. The Company understands that a delay in the
delivery of the Conversion Shares after the Conversion Share Delivery Date could result in economic loss to the Holder. As compensation
to the Holder for such loss, the Company agrees to pay (as liquidated damages and not as a penalty) to the Holder for late issuance
of Conversion Shares upon conversion of this Note the proportionate amount of $100 per business day after the Conversion Share
Delivery Date for each $10,000 of Conversion Price of Conversion Shares for which this Note is converted which are not timely delivered.
The Company shall pay any payments incurred under this Section in immediately available funds upon demand. Furthermore, in addition
to any other remedies which may be available to the Holder, in the event that the Company fails for any reason to effect delivery
of the Conversion Shares by the Conversion Share Delivery Date, the Holder may revoke all or part of the relevant Note conversion
by delivery of a notice to such effect to the Company, whereupon the Company and the Holder shall each be restored to their respective
positions immediately prior to the conversion of the relevant portion of this Note, except that the liquidated damages described
above shall be payable through the date notice of revocation or rescission is given to the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(c)&#9;</FONT><U>Buy-In</U>.
In addition to any other rights available to the Holder, if the Company fails to deliver to a Holder the Conversion Shares as required
pursuant to this Note, and the Holder or a broker on the Holder&rsquo;s behalf, purchases (in an open market transaction or otherwise)
shares of common stock to deliver in satisfaction of a sale by such Holder of the Conversion Shares which the Holder was entitled
to receive from the Company (a &ldquo;<B>Buy-In</B>&rdquo;), then the Company shall pay in cash to the Holder (in addition to any
remedies available to or elected by the Holder) the amount by which (A) the Holder&rsquo;s total purchase price (including brokerage
commissions, if any) for the shares of Common Stock so purchased exceeds (B) the aggregate Conversion Price of the Conversion Shares
required to have been delivered together with interest thereon at a rate of 15% per annum, accruing until such amount and any accrued
interest thereon is paid in full (which amount shall be paid as liquidated damages and not as a penalty). For example, if a Holder
purchases shares of Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to $10,000 of Conversion
Price of Conversion Shares to have been received upon conversion of this Note, the Company shall be required to pay the Holder
$1,000, plus interest. The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect
of the Buy-In.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(d)&#9;</FONT><U>Rights
as a Stockholder</U>. Unless and until this Note is converted in accordance with the terms hereof, Holder shall not be entitled
to vote or receive distributions or be deemed the holder of Conversion Shares or any other securities of the Company which may
at any time be issuable upon the conversion of this Note for any purpose, nor shall anything contained herein be construed to confer
upon Holder, as such, any of the rights of a stockholder of the Company or any right to vote as a stockholder of the Company or
upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any corporate action (whether
upon any recapitalization, issuance of equity securities of the Company, reclassification of equity securities of the Company,
consolidation, merger, transfer of assets or otherwise) or to receive notice of meetings, or to receive distributions or subscription
rights or otherwise unless and until this Note is converted in accordance with the terms hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(e)&#9;</FONT><U>Holder&rsquo;s
Exercise Limitations</U>. &nbsp;The Company shall not effect any conversion of this Note, and a Holder shall not have the right
to convert any portion of this Note, pursuant to this Section 3 or otherwise, to the extent that after giving effect to such issuance
after conversion as set forth on the applicable Conversion Notice, the Holder (together with the Holder&rsquo;s affiliates, and
any other persons acting as a group together with the Holder or any of the Holder&rsquo;s affiliates), would beneficially own in
excess of the Beneficial Ownership Limitation (as defined below).&nbsp; For purposes of the foregoing sentence, the number of shares
of Common Stock beneficially owned by the Holder and its affiliates shall include the number of shares of Common Stock issuable
upon conversion of this Note with respect to which such determination is being made, but shall exclude the number of shares of
Common Stock which would be issuable upon (i) conversion of the remaining, non-converted portion of this Note beneficially owned
by the Holder or any of its affiliates and (ii) exercise or conversion of the unexercised or non-converted portion of any other
convertible securities of the Company subject to a limitation on conversion or exercise analogous to the limitation contained herein
beneficially owned by the Holder or any of its affiliates.&nbsp; Except as set forth in the preceding sentence, for purposes of
this Section 3(e), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules
and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder
that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules
required to be filed in accordance therewith. &nbsp;&nbsp;To the extent that the limitation contained in this Section 3(e) applies,
the determination of whether this Note is convertible (in relation to other securities owned by the Holder together with any affiliates)
and of which portion of this Note is convertible shall be in the sole discretion of the Holder, and the submission of a Conversion
Notice shall be deemed to be the Holder&rsquo;s determination of whether this Note is convertible (in relation to other securities
owned by the Holder together with any affiliates) and of which portion of this Note is convertible, in each case subject to the
Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination.
&nbsp;&nbsp;In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section
13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 3(e), in determining
the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected
in (A) the Company&rsquo;s most recent periodic or annual report filed with the Commission, as the case may be, (B) a more recent
public announcement by the Company or (C) a more recent written notice by the Company or the Transfer Agent setting forth the number
of shares of Common Stock outstanding.&nbsp; Upon the written or oral request of a Holder, the Company shall within two business
days confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding.&nbsp; In any case, the
number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities
of the Company, including this Note, by the Holder or its affiliates since the date as of which such number of outstanding shares
of Common Stock was reported. &nbsp;The &ldquo;<B><I>Beneficial Ownership Limitation</I></B>&rdquo; shall be 4.99% of the number
of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon
conversion of this Note. The Holder, upon not less than 61 days&rsquo; prior notice to the Company, may increase or decrease the
Beneficial Ownership Limitation provisions of this Section 3(e), provided that the Beneficial Ownership Limitation in no event
exceeds 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares
of Common Stock upon conversion of this Note held by the Holder and the provisions of this Section 3(e) shall continue to apply.
&nbsp;Any such increase or decrease will not be effective until the 61st day after such notice is delivered to the Company. The
provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms
of this Section 3(e) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended
Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect
to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Note.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">4.&#9;</FONT><U>Events
of Default</U>. The term &ldquo;Event of Default&rdquo; shall mean any of the events set forth in this Section 4:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(a)&#9;</FONT>the
Company shall default in the payment of Principal Amount or Interest under this Note within five (5) days following such time of
becoming due, whether by maturity or acceleration;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(b)&#9;</FONT>failure
by the Company to perform or observe in any material respect any covenant or agreement of the Company contained in this Note, &nbsp;which
remains uncured for a period of fifteen (15) days from the date the Company is notified of such default;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(c)&#9;</FONT>there
shall be a dissolution, termination of existence, suspension or discontinuance of the Company&rsquo;s business for a continuous
period of 20 days;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(d)&#9;</FONT>if
the Company shall:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&#9;</FONT>admit
in writing its inability to pay its debts generally as they become due;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)&#9;</FONT>file
a petition in bankruptcy or a petition to take advantage of any insolvency act;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(iii)&#9;</FONT>convey
any material portion of the assets of the Company to a trustee, mortgage or liquidating agent or make an assignment for the benefit
of creditors;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(iv)&#9;</FONT>consent
to the appointment of a receiver, trustee, custodian or similar official, for the Company or any material portion of the property
or assets of the Company;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(v)&#9;</FONT>on
a petition in bankruptcy filed against it, be adjudicated a bankrupt; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(vi)&#9;</FONT>file
a petition or answer seeking reorganization or arrangement under the federal bankruptcy laws or any other applicable law or statute
of the United States of America or any State, district or territory thereof;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(e)&#9;</FONT>if
a court of competent jurisdiction shall enter an order, judgment, or decree appointing, without the consent of the Company, a receiver
of the whole or any substantial part of the Company&rsquo;s assets, and such order, judgment or decree shall not be vacated or
set aside or stayed within 60 days from the date of entry thereof; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(f)&#9;</FONT>if,
under the provisions of any other law for the relief or aid of debtors, any court of competent jurisdiction shall assume custody
or control of the whole or any substantial part of the Company&rsquo;s assets and such custody or control shall not be terminated
or stayed within 60 days from the date of assumption of such custody or control.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">If any Event of Default
described in clause (d) of this Section 4 shall occur, the Principal Amount of this Note, together with all accrued and unpaid
Interest, shall automatically be and become immediately due and payable, without notice or demand.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">If any Event of Default
(other than any Event of Default described in clause (d) of this Section 4) shall occur for any reason, whether voluntary or involuntary,
the Agent, acting on behalf of the Holder and other holders of the Notes, may, upon written notice to the Company, declare all
or any portion of the outstanding Principal Amount, together with all accrued and unpaid Interest, to be due and payable, whereupon
the full unpaid Principal Amount hereof, together with all accrued and unpaid Interest shall be so declared due and payable shall
be and become immediately due and payable if default is not cured by the Company within 10 business days of receipt of written
notice, without further notice, demand, or presentment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">5.&#9;</FONT><U>Remedies</U>.
Subject to the terms of the Security Agreement, in case any one or more of the Events of Default specified in Section 4 hereof
shall have occurred and be continuing, the Agent, acting on behalf of the Holder and other holders of the Note, may proceed to
protect and enforce the Holder&rsquo;s rights either by suit in equity and/or by action at law, whether for the specific performance
of any covenant or agreement contained in this Note or in aid of the exercise of any power granted in this Note or may proceed
to enforce the payment of all sums due upon this Note or to enforce any other legal or equitable right of the Holder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">6.&#9;</FONT><U>Affirmative
Covenants</U>. The Company covenants and agrees that, while any amounts under this Note are outstanding, it shall:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(a)&#9;</FONT>Do
all things necessary to preserve and keep in full force and effect its corporate existence, including, without limitation, all
licenses or similar qualifications required by it to engage in its business in all jurisdictions in which it is at the time so
engaged; and continue to engage in business of the same general type as conducted as of the date hereof; and continue to conduct
its business substantially as now conducted or as otherwise permitted hereunder;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(b)&#9;</FONT>Pay
and discharge promptly when due all taxes, assessments and governmental charges or levies imposed upon it or upon its income or
profits or in respect of its property before the same shall become delinquent or in default, which, if unpaid, might reasonably
be expected to give rise to liens or charges upon such properties or any part thereof, unless, in each case, the validity or amount
thereof is being contested in good faith by appropriate proceedings and the Company has maintained adequate reserves with respect
thereto in accordance with GAAP;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(c)&#9;</FONT>Comply
in all material respects with all federal, state and local laws and regulations, orders, judgments, decrees, injunctions, rules,
regulations, permits, licenses, authorizations and requirements applicable to it of all governmental bodies, departments, commissions,
boards, companies or associations insuring the premises, courts, authorities, officials or officers which are applicable to the
Company or any of its properties, except where the failure to so comply would not have a Material Adverse Effect (as defined in
this <U>Section 6</U>);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(d)&#9;</FONT>Keep
proper records and books of account with respect to its business activities, in which proper entries, reflecting all of their financial
transactions, are made in accordance with GAAP;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(e)&#9;</FONT>Keep
all of its properties adequately insured at all times with responsible insurance carriers against loss or damage by fire and other
hazards, and maintain adequate insurance at all times with responsible insurance carriers against liability on account of damage
or injury to persons and property.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">For purposes hereof,
&ldquo;Material Adverse Effect&rdquo; shall be an event, matter, condition or circumstance which has or would reasonably be expected
to have a material adverse effect on the business, operations, economic performance, assets, financial condition, material agreements
or results of operations of the Company and its subsidiaries, taken as a whole.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">7.&#9;</FONT><U>Negative
Covenants</U>. The Company covenants and agrees that while any amount of this Note is outstanding it will not directly or indirectly:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(a)&#9;</FONT>Declare
or pay, directly and indirectly, any cash dividends with respect to any shares of its capital stock (including without limitation
any preferred stock; provided, however, nothing in this Section 7 shall prohibit the cumulative accrual of dividends on the Company&rsquo;s
issued and outstanding shares of Series A and Series B Preferred Stock or prevent the redemption of the Series A Preferred Stock
in accordance with its terms and the payment of accrued dividends thereon upon such redemption), without first obtaining the prior
written consent of the holders of more than fifty one percent (51%) of the outstanding principal of the Notes (the &ldquo;Requisite
Holders&rdquo;);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(b)&#9;</FONT>Sell,
transfer, discount or otherwise dispose of any claim or debt owing to it, including, without limitation, any notes, accounts receivable
or other rights to receive payment, except for reasonable consideration and in the ordinary course of business;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(c)&#9;</FONT>Incur,
guarantee, assume or otherwise become responsible for (directly or indirectly) any indebtedness for borrowed money that is senior
to, or pari passu with, the Notes, without first obtaining the prior written consent of the Requisite Holders; <I><U>provided</U></I>,
<I><U>however</U></I>, that the foregoing shall not prohibit the Company from incurring such indebtedness from sources other than
the Holders on a pari passu basis without the consent of the Requisite Holders where the total amount of such indebtedness, inclusive
of that held by the Holders in the aggregate, does not exceed $2,000,000; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(d)&#9;</FONT>Create,
incur, assume or permit to exist any lien on any property or assets now owned or hereafter acquired by it or its Subsidiary or
on any income or revenues or rights in respect of any thereof that is senior to the Notes<B>.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">8.&#9;<U>Adjustments.</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(a)&#9;<U>Stock Dividends
and Splits</U>. In case the Company shall at any time (A) declare any dividend or distribution on its Common Stock or other securities
of the Company other than the Series A Preferred Stock or Series B Preferred Stock, (B) split or subdivide the outstanding Common
Stock, (C) combine the outstanding Common Stock into a smaller number of shares, or (D) issue by reclassification of its Common
Stock any shares or other securities of the Company, then in each such event the Conversion Price shall be adjusted proportionately
so that the Holders shall be entitled to receive the kind and number of shares or other securities of the Company which such Holders
would have owned or have been entitled to receive after the happening of any of the events described above had the Note been converted
immediately prior to the happening of such event (or any record date with respect thereto). Such adjustment shall be made whenever
any of the events listed above shall occur. An adjustment made to the Conversion Price pursuant to this Section 8(a) shall become
effective immediately after the effective date of the event.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 28.05pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(b)&#9;<U>Mergers, Consolidations,
Etc</U>. In case of any merger of the Company with or into any other corporation (other than a merger in which the Company is the
surviving or continuing corporation and which does not result in any reclassification, conversion, or change of the outstanding
shares of Common Stock), then lawful provision shall be made so that Holders shall thereafter have the right to convert the Notes
into the kind and amount of shares of stock and/or other securities or property receivable upon such merger by a Holder of the
number of shares of Common Stock into which such Notes might have been converted immediately prior to such consolidation or merger.
Such provision shall also provide for adjustments which shall be as nearly equivalent as may be practicable to the adjustments
provided for in this Section 8. The foregoing provisions of this Section 8(b) shall similarly apply to successive mergers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(c)&#9;<U>Sales or Conveyances</U>.
In case of any sale or conveyance to another person or entity, other than a subsidiary of the Company, of the property of the Company
as an entirety, or substantially as an entirety or a material part of the property of the Company, in connection with which shares
or other securities or cash or other property shall be issuable, distributable, payable, or deliverable for outstanding shares
of Common Stock, then, lawful provision shall be made so that the Holders shall thereafter have the right to convert the Notes
into the kind and amount of shares of stock or other securities or property that shall be issuable, distributable, payable, or
deliverable upon such sale or conveyance with respect to each share of Common Stock immediately prior to such conveyance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(d)&#9;If the Common
Stock shall be changed to the same or different number of shares of any class or classes of stock, whether by reclassification,
exchange, substitution or otherwise (other than by way of a stock split or combination of shares or stock dividends provided for
in Section 8(a), or by a reorganization, merger, consolidation, or sale of assets other than as provided for in Section 8(b) hereof),
then, and in each event, an appropriate revision to the Conversion Price shall be made and provisions shall be made (by adjustments
of the Conversion Price or otherwise) so that the Holder shall have the right thereafter to convert the Note into the kind and
amount of shares of stock and other securities receivable upon reclassification, exchange, substitution or other change, by holders
of the number of shares of Common Stock into which the Note might have been converted immediately prior to such reclassification,
exchange, substitution or other change, all subject to further adjustment as provided herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(e)&#9;<U>Calculations</U>.
All calculations under this <U>Section 8</U> shall be made to the nearest cent or the nearest 1/100th of a share, as the case may
be. For purposes of this <U>Section 8</U>, the number of shares of Common Stock deemed to be issued and outstanding as of a given
date shall be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(f)&#9;<U>Voluntary Adjustment
By Company</U>. The provisions of this <U>Section 8</U> shall similarly apply to successive, stock dividends, stock spits or combinations,
reclassifications, exchanges, substitutions, dilutive Issuances or other events.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">9.&#9;</FONT><U>Amendments
and Waivers</U>. The terms of this Note may be amended and the observance of any term of this Note may be waived (either generally
or in a particular instance and either retroactively or prospectively) with the written consent of the Company and the Requisite
Holders, except with respect to the Maturity Date and the Conversion Price, which can only be amended with the Holder&rsquo;s consent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">10.&#9;</FONT><U>Notices</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(a)&#9;</FONT>Any
notice, request or other document required or permitted to be given or delivered to the Holder by the Company shall be delivered
in accordance with the notice provisions of the Securities Purchase Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(b)&#9;</FONT>Any
party may give any notice, request, consent or other communication under this Note using any other means (including personal delivery,
messenger service, telecopy, first class mail or electronic mail), but no such notice, request, consent or other communication
shall be deemed to have been duly given unless and until it is actually received by the party for whom it is intended. Any party
may change the address to which notices, requests, consents or other communications hereunder are to be delivered by giving the
other parties notice in the manner set forth in this <U>Section 10</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">11.&#9;</FONT><U>Severability</U>.
The unenforceability or invalidity of any provision or provisions of this Note as to any persons or circumstances shall not render
that provision or those provisions unenforceable or invalid as to any other provisions or circumstances, and all provisions hereof,
in all other respects, shall remain valid and enforceable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">12.&#9;</FONT><U>Governing
Law</U>. This Note shall be governed by and construed under the laws of the State of New York applicable to agreements made and
to be performed entirely within such jurisdiction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">13.&#9;</FONT><U>Waivers</U>.
The non-exercise by either party of any of its rights hereunder in any particular instance shall not constitute a waiver thereof
in that or any subsequent instance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">14.&#9;</FONT><U>Attorneys&rsquo;
Fees; Costs</U>. If any Event of Default occurs, the Company promises to pay all costs of enforcement and collection, including
but not limited to, Holder&rsquo;s attorneys&rsquo; fees, whether or not any action or proceeding is brought to enforce the provisions
hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">15.&#9;</FONT><U>Successor
and Assigns</U>. This Note shall be binding upon the Company and its successors and permitted assigns and shall inure to the benefit
of the Holder and its successors and assigns. The Company may not assign or delegate any of its duties or obligations under this
Note without the written consent of the Holder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B><I>[Signature page to Follow]</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>&nbsp;</I></B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">IN WITNESS WHEREOF,
the Company has caused its duly authorized officers to execute this Note as of the date first written above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-indent: 0.5in"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding: 0; text-indent: 0"><B>COMPANY:&nbsp;&nbsp;</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0; width: 50%">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0; width: 4%">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0; width: 46%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding: 0; text-indent: 0"><FONT STYLE="text-transform: uppercase"><B>BEESFREE, INC. </B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0">By:</TD>
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0">Name:</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0">Title</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; font-weight: normal; text-align: center; text-indent: 0"><B>&nbsp;</B></TD>
    <TD STYLE="padding: 0; font-weight: normal; text-align: center; text-indent: 0"><B>&nbsp;</B></TD>
    <TD STYLE="padding: 0; font-weight: normal; text-align: center; text-indent: 0"><B>&nbsp;</B></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in; text-align: justify; text-indent: 0.5in"></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B><U>&nbsp;</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B><U>Optional Conversion
Notice</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">______________________,
the registered holder of this 15% Senior Secured Convertible Note, issued ________, 2013, hereby gives notice of the conversion
of __________ of the outstanding principal and accrued interest due under this Note into Common Stock of BeesFree, Inc. at a conversion
price equal to $1.00 per share<FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>.</SUP></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in">Holder:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in">______________________________________________</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in">(Print Name)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in">__________________________________________________</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in">Signature</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in">Date: ________________</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>5
<FILENAME>v364595_ex10-4.htm
<DESCRIPTION>EXHIBIT 10.4
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>NEITHER THE ISSUANCE AND SALE OF THE
SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE,
SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE
FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING
THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT
SECURED BY THE SECURITIES</B>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 40%; padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 60%; padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">Right to Purchase <B>_____________</B> shares of Common Stock of BeesFree, Inc. (subject to adjustment as provided herein)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>COMMON STOCK PURCHASE WARRANT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">No. 2013-B-00_&#9;&#9; Issue Date: December
31, 2013</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">BEESFREE, INC., a corporation
organized under the laws of the State of Nevada (the &ldquo;<B>Company</B>&rdquo;), hereby certifies that, for value received,
<B>________________________________</B> (the &ldquo;<B>Holder</B>&rdquo;), address at _________________________________________________,
or its assigns, is entitled, subject to the terms set forth below, to purchase from the Company at any time after the Issue Date
until 5:00 p.m., Eastern Time on the five year anniversary of the Issue Date (the &ldquo;<B>Expiration Date</B>&rdquo;), up to
_____________ fully paid and non-assessable shares of Common Stock at a per share purchase price of <B>$1.00</B>. The aforedescribed
purchase price per share, as adjusted from time to time as herein provided, is referred to herein as the &ldquo;<B>Purchase Price</B>.&rdquo;
The number and character of such shares of Common Stock and the Purchase Price are subject to adjustment as provided herein. The
Company may reduce the Purchase Price for some or all of the Warrants, temporarily or permanently, provided such reduction applies
equally to all Holders of such Warrants. Capitalized terms used and not otherwise defined herein shall have the meanings set forth
in that certain Securities Purchase Agreement (the &ldquo;<B>Purchase Agreement</B>&rdquo;), dated as of December 31, 2013, and
entered into by the Company, the Holder and the other signatories thereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As used herein the
following terms, unless the context otherwise requires, have the following respective meanings:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)&#9;The term &ldquo;<B>Company</B>&rdquo;
shall mean BeesFree, Inc., a Nevada corporation, and any corporation which shall succeed or assume the obligations of BeesFree,
Inc. hereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)&#9;The term &ldquo;<B>Common
Stock</B>&rdquo; includes (i)&nbsp;the Company&rsquo;s Common Stock, $0.001 par value per share, as authorized on the date of the
Purchase Agreement, and (ii) any other securities into which or for which any of the securities described in (i)&nbsp;may be converted
or exchanged pursuant to a plan of recapitalization, reorganization, merger, sale of assets or otherwise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)&#9;The term &ldquo;<B>Other
Securities</B>&rdquo; refers to any stock (other than Common Stock) and other securities of the Company or any other person (corporate
or otherwise) which the holder of the Warrant at any time shall be entitled to receive, or shall have received, on the exercise
of the Warrant, in lieu of or in addition to Common Stock, or which at any time shall be issuable or shall have been issued in
exchange for or in replacement of Common Stock or Other Securities pursuant to <U>Section&nbsp;4</U> or otherwise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(d)&#9;The term &ldquo;<B>Warrant
Shares</B>&rdquo; shall mean the Common Stock issuable upon exercise of this Warrant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">1.&#9;<U>Exercise of Warrant</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">1.1.&#9;<U>Number of
Shares Issuable upon Exercise</U>. From and after the Issue Date through and including the Expiration Date, the Holder hereof shall
be entitled to receive, upon exercise of this Warrant in whole in accordance with the terms of <U>Section&nbsp;1.2</U> or upon
exercise of this Warrant in part in accordance with <U>Section&nbsp;1.3</U>, shares of Common Stock of the Company, subject to
adjustment pursuant to <U>Section&nbsp;4</U> below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">1.2.&#9;<U>Full Exercise</U>.
This Warrant may be exercised in full by the Holder hereof by delivery to the Company of an original or facsimile copy of the form
of subscription attached as <U>Exhibit&nbsp;A</U> hereto (the &ldquo;<B>Subscription Form</B>&rdquo;) duly executed by such Holder,
and delivery within two days thereafter of payment, in cash, wire transfer or by certified or official bank check payable to the
order of the Company, in the amount obtained by multiplying the number of shares of Common Stock for which this Warrant is then
exercisable by the Purchase Price then in effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">1.3.&#9;<U>Partial Exercise</U>.
This Warrant may be exercised in part (but not for a fractional share) by delivery of a Subscription Form in the manner and at
the place provided in <U>Section&nbsp;1.2</U>, except that the amount payable by the Holder on such partial exercise shall be the
amount obtained by multiplying (a)&nbsp;the number of whole shares of Common Stock designated by the Holder in the Subscription
Form by (b)&nbsp;the Purchase Price then in effect. On any such partial exercise, provided the Holder has surrendered the original
Warrant, the Company, at its expense, will forthwith issue and deliver to or upon the order of the Holder hereof a new Warrant
of like tenor, in the name of the Holder hereof or as such Holder (upon payment by such Holder of any applicable transfer taxes)
may request, the whole number of shares of Common Stock for which such Warrant may still be exercised. The original Warrant is
not required to be surrendered to the Company until it has been fully exercised.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">1.4.&#9;<U>Fair Market
Value</U>. For purposes of this Warrant, the <B>Fair Market Value</B> of a share of Common Stock as of a particular date (the &ldquo;<B>Determination
Date</B>&rdquo;) shall mean:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(a)&#9;If the Company&rsquo;s
Common Stock is quoted on the NASDAQ Global Market, NASDAQ Global Select Market, the NASDAQ Capital Market, the New York Stock
Exchange or the NYSE AMEX Equities, then the average of the closing sale prices of the Common Stock for the five (5) trading days
immediately prior to (but not including) the Determination Date;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(b)&#9;If the Company&rsquo;s
Common Stock is not traded on an exchange or on the NASDAQ Global Market, NASDAQ Global Select Market, the NASDAQ Capital Market,
the New York Stock Exchange or the NYSE AMEX Equities, but is traded on the OTC Bulletin Board or in any over-the-counter market
maintained by the OTC Markets Group, Inc., then the average of the closing bid and ask prices reported for the five (5) trading
days immediately prior to (but not including) the Determination Date;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(c)&#9;Except as provided
in clause (d)&nbsp;below and <U>Section 3.1</U>, if the Company&rsquo;s Common Stock is not publicly traded, then as the Holder
and the Company agree, or in the absence of such an agreement, by arbitration in accordance with the rules then standing of the
American Arbitration Association, before a single arbitrator to be chosen from a panel of persons qualified by education and training
to pass on the matter to be decided; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(d)&#9;If the Determination
Date is the date of a liquidation, dissolution or winding up, or any event deemed to be a liquidation, dissolution or winding up
pursuant to the Company&rsquo;s charter, then all amounts to be payable per share to holders of the Common Stock pursuant to the
charter in the event of such liquidation, dissolution or winding up, plus all other amounts to be payable per share in respect
of the Common Stock in liquidation under the charter, shall assume for the purposes of this clause (d)&nbsp;that all of the shares
of Common Stock then issuable upon exercise of all of the Warrants are issued and outstanding at the Determination Date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">1.5.&#9;<U>Company Acknowledgment</U>.
The Company will, at the time of the exercise of the Warrant, upon the request of the Holder hereof, acknowledge in writing its
continuing obligation to afford to such Holder any rights to which such Holder shall continue to be entitled after such exercise
in accordance with the provisions of this Warrant. If the Holder shall fail to make any such request, such failure shall not affect
the continuing obligation of the Company to afford to such Holder any such rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">1.6.&#9;<U>Delivery of
Stock Certificates, etc. on Exercise</U>. The Company agrees that, provided the purchase price listed in the Subscription Form
is received as specified in <U>Section 1.2</U>, the shares of Common Stock purchased upon exercise of this Warrant shall be deemed
to be issued to the Holder hereof as the record owner of such shares as of the close of business on the date on which delivery
of a Subscription Form shall have occurred and payment made for such shares as aforesaid. As soon as practicable after the exercise
of this Warrant in full or in part, and in any event within five (5) business days thereafter (&ldquo;<B>Warrant Share Delivery
Date</B>&rdquo;), the Company at its expense (including the payment by it of any applicable issue taxes) will cause to be issued
in the name of and delivered to the Holder hereof, or as such Holder (upon payment by such Holder of any applicable transfer taxes)
may direct in compliance with applicable securities laws, a certificate or certificates for the number of duly and validly issued,
fully paid and non-assessable shares of Common Stock (or Other Securities) to which such Holder shall be entitled on such exercise,
together with any other stock or other securities and property (including cash, where applicable) to which such Holder is entitled
upon such exercise pursuant to <U>Section&nbsp;1</U> or otherwise. No fractional shares of Common Stock will be issued in connection
with any exercise hereof, but in lieu of such fractional shares, the Company shall round the number of shares to be issued upon
exercise up to the nearest whole number of shares. The Company understands that a delay in the delivery of the Warrant Shares after
the Warrant Share Delivery Date could result in economic loss to the Holder. As compensation to the Holder for such loss, the Company
agrees to pay (as liquidated damages and not as a penalty) to the Holder for late issuance of Warrant Shares upon exercise of this
Warrant the proportionate amount of $100 per business day after the Warrant Share Delivery Date for each $10,000 of Purchase Price
of Warrant Shares for which this Warrant is exercised which are not timely delivered. The Company shall pay any payments incurred
under this Section in immediately available funds upon demand. Furthermore, in addition to any other remedies which may be available
to the Holder, in the event that the Company fails for any reason to effect delivery of the Warrant Shares by the Warrant Share
Delivery Date, the Holder may revoke all or part of the relevant Warrant exercise by delivery of a notice to such effect to the
Company, whereupon the Company and the Holder shall each be restored to their respective positions immediately prior to the exercise
of the relevant portion of this Warrant, except that the liquidated damages described above shall be payable through the date notice
of revocation or rescission is given to the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">1.7.&#9;<U>Buy-In</U>.
In addition to any other rights available to the Holder, if the Company fails to deliver to a Holder the Warrant Shares as required
pursuant to this Warrant, and the Holder or a broker on the Holder&rsquo;s behalf, purchases (in an open market transaction or
otherwise) shares of common stock to deliver in satisfaction of a sale by such Holder of the Warrant Shares which the Holder was
entitled to receive from the Company (a &ldquo;<B>Buy-In</B>&rdquo;), then the Company shall pay in cash to the Holder (in addition
to any remedies available to or elected by the Holder) the amount by which (A) the Holder&rsquo;s total purchase price (including
brokerage commissions, if any) for the shares of common stock so purchased exceeds (B) the aggregate Purchase Price of the Warrant
Shares required to have been delivered together with interest thereon at a rate of 15% per annum, accruing until such amount and
any accrued interest thereon is paid in full (which amount shall be paid as liquidated damages and not as a penalty). For example,
if a Holder purchases shares of Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to $10,000
of Purchase Price of Warrant Shares to have been received upon exercise of this Warrant, the Company shall be required to pay the
Holder $1,000, plus interest. The Holder shall provide the Company written notice indicating the amounts payable to the Holder
in respect of the Buy-In.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">1.8&#9;<U>Rights as a
Stockholder</U>. Unless and until this Warrant is exercised in accordance with the terms hereof, Holder shall not be entitled to
vote or receive distributions or be deemed the holder of Warrant Shares or any other securities of the Company which may at any
time be issuable upon the exercise of this Warrant for any purpose, nor shall anything contained herein be construed to confer
upon Holder, as such, any of the rights of a stockholder of the Company or any right to vote as a stockholder of the Company or
upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any corporate action (whether
upon any recapitalization, issuance of equity securities of the Company, reclassification of equity securities of the Company,
consolidation, merger, transfer of assets or otherwise) or to receive notice of meetings, or to receive distributions or subscription
rights or otherwise unless and until this Warrant is exercised in accordance with the terms hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">1.9&#9;<U>Holder&rsquo;s
Exercise Limitations</U>. &nbsp;The Company shall not effect any exercise of this Warrant, and a Holder shall not have the right
to exercise any portion of this Warrant, pursuant to this Section 1, Section 2 or otherwise, to the extent that after giving effect
to such issuance after exercise as set forth on the applicable Subscription Form, the Holder (together with the Holder&rsquo;s
affiliates, and any other persons acting as a group together with the Holder or any of the Holder&rsquo;s affiliates), would beneficially
own in excess of the Beneficial Ownership Limitation (as defined below).&nbsp; For purposes of the foregoing sentence, the number
of shares of Common Stock beneficially owned by the Holder and its affiliates shall include the number of shares of Common Stock
issuable upon exercise of this Warrant with respect to which such determination is being made, but shall exclude the number of
shares of Common Stock which would be issuable upon (i) exercise of the remaining, non-exercised portion of this Warrant beneficially
owned by the Holder or any of its affiliates and (ii) exercise or conversion of the unexercised or non-converted portion of any
other convertible securities of the Company subject to a limitation on conversion or exercise analogous to the limitation contained
herein beneficially owned by the Holder or any of its affiliates.&nbsp; Except as set forth in the preceding sentence, for purposes
of this Section 1.9, beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules
and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder
that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules
required to be filed in accordance therewith. &nbsp;&nbsp;To the extent that the limitation contained in this Section 1.9 applies,
the determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any
affiliates) and of which portion of this Warrant is exercisable shall be in the sole discretion of the Holder, and the submission
of a Subscription Form shall be deemed to be the Holder&rsquo;s determination of whether this Warrant is exercisable (in relation
to other securities owned by the Holder together with any affiliates) and of which portion of this Warrant is exercisable, in each
case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy
of such determination. &nbsp;&nbsp;In addition, a determination as to any group status as contemplated above shall be determined
in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this
Section 1.9, in determining the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares
of Common Stock as reflected in (A) the Company&rsquo;s most recent periodic or annual report filed with the Commission, as the
case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or the Transfer
Agent setting forth the number of shares of Common Stock outstanding.&nbsp; Upon the written or oral request of a Holder, the Company
shall within two business days confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding.&nbsp;
In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise
of securities of the Company, including this Warrant, by the Holder or its affiliates since the date as of which such number of
outstanding shares of Common Stock was reported. &nbsp;The &ldquo;<B><I>Beneficial Ownership Limitation</I></B>&rdquo; shall be
4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common
Stock issuable upon exercise of this Warrant. The Holder, upon not less than 61 days&rsquo; prior notice to the Company, may increase
or decrease the Beneficial Ownership Limitation provisions of this Section 1.9, provided that the Beneficial Ownership Limitation
in no event exceeds 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance
of shares of Common Stock upon exercise of this Warrant held by the Holder and the provisions of this Section 1.9 shall continue
to apply. &nbsp;Any such increase or decrease will not be effective until the 61st day after such notice is delivered to the Company.
The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms
of this Section 1.9 to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended
Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect
to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Warrant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#9;1.9.&#9;<U>Mandatory
Exercise</U>. Notwithstanding anything to the contrary contained herein, the Company may, at any time, or from time to time, require
the Holder, upon not less than fifteen (15) trading days prior written notice, to exercise this Warrant in whole or in part in
the event (i) the Company&rsquo;s Common Stock shall be listed for trading on a Principal Market, (ii) the volume weighted average
price of the Common Stock as reported by Bloomberg L.P. for the Principal Market for twenty (20) consecutive trading days was at
least $3.75, (iii) the average daily trading volume of the Common Stock on the Principal Market, as reported by Bloomberg L.P.,
was not less than 50,000 shares for each of such twenty (20) consecutive trading days, (iv) either there is an effective registration
statement covering the resale of the Warrant Shares or the Warrant Shares may be sold without restriction under Rule 144, and (v)
an Event of Default (as defined in that certain 15% Senior Secured Convertible Note of the Company to the Holder of even date herewith)
has not occurred and is continuing. In the event that the Holder does not exercise this Warrant prior to the date prescribed by
the Company (the &ldquo;<B>Mandatory Exercise Date</B>&rdquo;), this Warrant shall expire immediately and the Mandatory Exercise
Date shall be deemed to be the &ldquo;<B>Expiration Date</B>&rdquo; hereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">2.&#9;<U>Cashless Exercise</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(a)&#9;Payment upon exercise
may be made at the option of the Holder either in (i) cash, wire transfer or by certified or official bank check payable to the
order of the Company equal to the applicable aggregate Purchase Price, (ii) by delivery of Common Stock issuable upon exercise
of the Warrants in accordance with Section&nbsp;(b)&nbsp;below or (iii)&nbsp;by a combination of any of the foregoing methods,
for the number of shares of Common Stock specified in such form (as such exercise number shall be adjusted to reflect any adjustment
in the total number of shares of Common Stock issuable to the holder per the terms of this Warrant) and the holder shall thereupon
be entitled to receive the number of duly authorized, validly issued, fully-paid and non-assessable shares of Common Stock (or
Other Securities) determined as provided herein. Notwithstanding the immediately preceding sentence, payment upon exercise may
be made in the manner described in Section 2(b) below, commencing on the date hereof, but only with respect to Warrant Shares <U>not</U>
included for unrestricted public resale in an effective Registration Statement on the date notice of exercise is given by the Holder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(b)&#9;If the Fair Market
Value of one share of Common Stock is greater than the Purchase Price (at the date of calculation as set forth below), in lieu
of exercising this Warrant for cash, the holder may elect to receive shares equal to the value (as determined below) of this Warrant
(or the portion thereof being cancelled) by delivery of a properly endorsed Subscription Form delivered to the Company by any means
described in <U>Section 12</U>, in which event the Company shall issue to the holder a number of shares of Common Stock computed
using the following formula:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-align: left; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: left; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding: 0; text-align: left; text-indent: 0"><FONT STYLE="font-size: 10pt">X=<U>Y (A-B)</U></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-align: left; text-indent: 0; width: 25%">&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: left; text-indent: 0; width: 5%">&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: left; text-indent: 0; width: 5%"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A</FONT></TD>
    <TD STYLE="padding: 0; text-align: left; text-indent: 0; width: 65%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-align: left; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: left; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: left; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-align: left; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: left; text-indent: 0"><FONT STYLE="font-size: 10pt">Where</FONT></TD>
    <TD STYLE="padding: 0; text-align: left; text-indent: 0"><FONT STYLE="font-size: 10pt">X=</FONT></TD>
    <TD STYLE="padding: 0; text-align: left; text-indent: 0"><FONT STYLE="font-size: 10pt">the number of shares of Common Stock to be issued to the Holder</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-align: left; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: left; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: left; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0"><FONT STYLE="font-size: 10pt">Y=</FONT></TD>
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0"><FONT STYLE="font-size: 10pt">the number of shares of Common Stock purchasable under the Warrant or, if only a portion of the Warrant is being exercised, the portion of the Warrant being exercised (at the date of such calculation)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-align: left; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: left; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: left; text-indent: 0"><FONT STYLE="font-size: 10pt">A=</FONT></TD>
    <TD STYLE="padding: 0; text-align: left; text-indent: 0"><FONT STYLE="font-size: 10pt">Fair Market Value</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-align: left; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: left; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: left; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-align: left; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: left; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: left; text-indent: 0"><FONT STYLE="font-size: 10pt">B=</FONT></TD>
    <TD STYLE="padding: 0; text-align: left; text-indent: 0"><FONT STYLE="font-size: 10pt">Purchase Price (as adjusted to the date of such calculation)</FONT></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For purposes of Rule
144 promulgated under the 1933 Act, it is intended, understood and acknowledged that the Warrant Shares issued in a cashless exercise
transaction in the manner described above shall be deemed to have been acquired by the Holder, and the holding period for the Warrant
Shares shall be deemed to have commenced, on the date this Warrant was originally issued pursuant to the Purchase Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">3.&#9;<U>Adjustment for
Reorganization, Consolidation, Merger, etc.</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">3.1.&#9;<U>Fundamental&nbsp;Transaction</U>.&nbsp;
If, at any time while this Warrant is outstanding,&nbsp;(A) the Company&nbsp; effects any merger or&nbsp; consolidation&nbsp; of
the Company with or into another entity, other than a merger or consolidation that does not result in a Change of Control of the
Company,&nbsp;(B) the Company effects any sale of all or substantially&nbsp;all of its&nbsp;assets&nbsp;in one or a&nbsp;series&nbsp;of&nbsp;related
transactions to an unrelated third party or parties,&nbsp; (C) any&nbsp;tender&nbsp;offer or&nbsp;exchange&nbsp;offer&nbsp;(whether
by the Company or another entity) is completed pursuant to which holders of Common Stock&nbsp;are&nbsp;permitted&nbsp;to&nbsp;tender&nbsp;or&nbsp;exchange
their shares&nbsp;for&nbsp;other securities, cash or&nbsp;property, (D) the Company consummates a stock purchase agreement or other
business combination (including, without limitation, a reorganization, recapitalization, or spin-off) with one or more persons
or entities whereby such other persons or entities acquire more than the 50% of the outstanding shares of Common Stock (not including
any shares of Common Stock held by such other persons or entities making or party to, or associated or affiliated with the other
persons or entities making or party to, such stock purchase agreement or other business combination), (E) any &ldquo;person&rdquo;
or &ldquo;group&rdquo; (as these terms are used for purposes of Sections 13(d) and 14(d) of the Exchange Act) is or shall become
the &ldquo;beneficial owner&rdquo; (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of 50% of the aggregate
Common Stock of the Company,&nbsp;or&nbsp;(F)&nbsp;the Company effects any reclassification of the Common Stock or any compulsory&nbsp;share&nbsp;exchange
pursuant&nbsp;to which the Common Stock is effectively converted&nbsp;into or exchanged&nbsp;for other&nbsp;securities,&nbsp;cash
or property (in any such case, a &ldquo;<B>Fundamental&nbsp; Transaction</B>&rdquo;),&nbsp;then, upon any&nbsp;subsequent&nbsp;exercise
of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been issuable upon such exercise
immediately prior to the occurrence of such Fundamental&nbsp;Transaction,&nbsp; upon exercise of this Warrant,&nbsp;the number
of shares of Common Stock of the successor or acquiring corporation or of the Company,&nbsp;if it is the surviving&nbsp;corporation,&nbsp;and
any additional consideration (the &ldquo;<B>Alternate Consideration</B>&rdquo;)&nbsp;receivable&nbsp;upon or as a&nbsp;result&nbsp;of
such reorganization, reclassification, merger, consolidation&nbsp;or&nbsp;disposition&nbsp;of&nbsp;assets by a Holder of the number
of shares of Common&nbsp;Stock for which this Warrant is exercisable immediately prior to such event. For&nbsp;purposes&nbsp;of
any such exercise, the determination&nbsp;of the Purchase Price shall be&nbsp;appropriately&nbsp;adjusted to apply to such Alternate
Consideration&nbsp;based on the amount of Alternate&nbsp;Consideration&nbsp;issuable in respect of one share of Common Stock in
such Fundamental&nbsp;Transaction,&nbsp;and the Company shall apportion&nbsp;the Purchase Price among&nbsp;the&nbsp;Alternate Consideration
in a reasonable manner reflecting the relative value of any different components of the Alternate&nbsp;Consideration.&nbsp; If
holders of Common Stock are given any choice as to the securities, cash or&nbsp;property&nbsp;to be received in a Fundamental Transaction,
then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant
following such Fundamental&nbsp;Transaction.&nbsp; To the extent necessary to effectuate the foregoing&nbsp;provisions,&nbsp;any
successor to the Company or surviving entity in such Fundamental Transaction shall issue to the Holder a new&nbsp;warrant&nbsp;consistent&nbsp;with
the&nbsp;foregoing&nbsp;provisions&nbsp;and evidencing&nbsp;the Holder&rsquo;s&nbsp;right to exercise&nbsp;such warrant&nbsp;into&nbsp;Alternate
Consideration.&nbsp; The terms of any agreement&nbsp;pursuant to which a Fundamental Transaction is effected shall include terms
requiring any such successor or surviving&nbsp;entity to comply with the&nbsp;provisions&nbsp;of this&nbsp;<U>Section 3.1</U> and
insuring&nbsp;that this Warrant (or any such replacement security) will be similarly adjusted upon any subsequent transaction analogous&nbsp;to&nbsp;a
Fundamental Transaction. For the purpose of this <U>Section 3.1</U>, a &ldquo;<B>Change of Control</B>&rdquo; is defined as business
transaction or reorganization as a result of which the shareholders of the Company immediately prior to the transaction or reorganization
hold less than a majority of the voting interests of the surviving corporation or other entity after the transaction or reorganization,
or any similar corporate or other reorganization on or after the Issue Date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">3.2.&#9;<U>Continuation
of Terms</U>. Upon any reorganization, consolidation, merger or transfer (and any dissolution following any transfer) referred
to in this <U>Section&nbsp;3</U>, this Warrant shall continue in full force and effect and the terms hereof shall be applicable
to the Other Securities and property receivable on the exercise of this Warrant after the consummation of such reorganization,
consolidation or merger or the effective date of dissolution following any such transfer, as the case may be, and shall be binding
upon the issuer of any Other Securities, including, in the case of any such transfer, the person acquiring all or substantially
all of the properties or assets of the Company, whether or not such person shall have expressly assumed the terms of this Warrant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">4.&#9;<U>Extraordinary
Events Regarding Common Stock</U>. In the event that the Company shall (a)&nbsp;issue additional shares of Common Stock as a dividend
or other distribution on outstanding Common Stock, (b)&nbsp;subdivide its outstanding shares of Common Stock, or (c)&nbsp;combine
its outstanding shares of the Common Stock into a smaller number of shares of Common Stock, then, in each such event, the Purchase
Price shall, simultaneously with the happening of such event, be adjusted by multiplying the then Purchase Price by a fraction,
the numerator of which shall be the number of shares of Common Stock outstanding immediately prior to such event and the denominator
of which shall be the number of shares of Common Stock outstanding immediately after such event, and the product so obtained shall
thereafter be the Purchase Price then in effect. The Purchase Price, as so adjusted, shall be readjusted in the same manner upon
the happening of any successive event or events described herein in this <U>Section&nbsp;4</U>. The number of shares of Common
Stock that the Holder of this Warrant shall thereafter, on the exercise hereof, be entitled to receive shall be adjusted to a number
determined by multiplying the number of shares of Common Stock that would otherwise (but for the provisions of this <U>Section
4</U>) be issuable on such exercise by a fraction of which (a) the numerator is the Purchase Price that would otherwise (but for
the provisions of this <U>Section 4</U>) be in effect, and (b) the denominator is the Purchase Price in effect on the date of such
exercise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">5.&#9;<U>Certificate
as to Adjustments</U>. In each case of any adjustment or readjustment in the shares of Common Stock (or Other Securities) issuable
on the exercise of the Warrants or the Purchase Price, the Company at its expense will promptly cause its Chief Financial Officer
or other appropriate designee to compute such adjustment or readjustment in accordance with the terms of the Warrant and prepare
a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment
is based, including a statement of (a)&nbsp;the consideration received or receivable by the Company for any additional shares of
Common Stock (or Other Securities) issued or sold or deemed to have been issued or sold, (b)&nbsp;the number of shares of Common
Stock (or Other Securities) outstanding or deemed to be outstanding, and (c)&nbsp;the Purchase Price and the number of shares of
Common Stock to be received upon exercise of this Warrant, in effect immediately prior to such adjustment or readjustment and as
adjusted or readjusted as provided in this Warrant. The Company will forthwith mail a copy of each such certificate to the Holder
of the Warrant and any Warrant Agent of the Company (appointed pursuant to <U>Section&nbsp;9</U> hereof). Holder will be entitled
to the benefit of the adjustment regardless of the giving of such notice. The timely giving of such notice to Holder is a material
obligation of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">6.&#9;<U>Reservation
of Stock, etc. Issuable on Exercise of Warrant; Financial Statements</U>. The Company will at all times reserve and keep available,
solely for issuance and delivery on the exercise of the Warrants, all shares of Common Stock (or Other Securities) from time to
time issuable on the exercise of the Warrant. This Warrant entitles the Holder hereof, upon written request, to receive copies
of all financial and other information distributed or required to be distributed to the holders of the Company&rsquo;s Common Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">7.&#9;<U>Assignment;
Exchange of Warrant</U>. Subject to compliance with applicable securities laws, this Warrant, and the rights evidenced hereby,
may be transferred by any registered holder hereof (a &ldquo;<B>Transferor</B>&rdquo;). On the surrender for exchange of this Warrant,
with the Transferor&rsquo;s endorsement in the form of <U>Exhibit&nbsp;B</U> attached hereto (the &ldquo;<B>Transferor Endorsement
Form</B>&rdquo;) and together with an opinion of counsel reasonably satisfactory to the Company that the transfer of this Warrant
will be in compliance with applicable securities laws, the Company will issue and deliver to or on the order of the Transferor
thereof a new Warrant or Warrants of like tenor, in the name of the Transferor and/or the transferee(s) specified in such Transferor
Endorsement Form (each a &ldquo;<B>Transferee</B>&rdquo;), calling in the aggregate on the face or faces thereof for the number
of shares of Common Stock called for on the face or faces of the Warrant so surrendered by the Transferor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">8.&#9;<U>Replacement
of Warrant</U>. On receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of
this Warrant and, in the case of any such loss, theft or destruction of this Warrant, on delivery of an indemnity agreement or
security reasonably satisfactory in form and amount to the Company or, in the case of any such mutilation, on surrender and cancellation
of this Warrant, the Company at its expense, twice only, will execute and deliver, in lieu thereof, a new Warrant of like tenor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">9.&#9;<U>Warrant Agent</U>.
The Company may, by written notice to the Holder of the Warrant, appoint an agent (a &ldquo;<B>Warrant Agent</B>&rdquo;) for the
purpose of issuing Common Stock (or Other Securities) on the exercise of this Warrant pursuant to <U>Section&nbsp;1</U> or <U>Section
2</U>, exchanging this Warrant pursuant to <U>Section&nbsp;7</U>, and replacing this Warrant pursuant to <U>Section&nbsp;8</U>,
or any of the foregoing, and thereafter any such issuance, exchange or replacement, as the case may be, shall be made at such office
by such Warrant Agent.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">10.&#9;<U>Transfer
on the Company&rsquo;s Books</U>. Until this Warrant is transferred on the books of the Company, the Company may treat the registered
holder hereof as the absolute owner hereof for all purposes, notwithstanding any notice to the contrary.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">11.&#9;<U>Registration
Rights</U>. The Holder of this Warrant has been granted certain registration rights by the Company. These registration rights are
set forth in the Purchase Agreement. The terms of the Purchase Agreement and such registration rights are incorporated herein by
this reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">12.&#9;<U>Notices</U>.
All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing
and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return
receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted
by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified
most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed
effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine,
at the address or number designated below (if delivered on a business day during normal business hours where such notice is to
be received), or the first business day following such delivery (if delivered other than on a business day during normal business
hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service,
fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for
such communications shall be: if to the Company, to: BeesFree, Inc., 2101 Vista Parkway, Suite 4033, West Palm Beach, Florida 33411,
Fax: (561) 623-5465, and (ii) if to the Holder, to the address and facsimile number listed on the first paragraph of this Warrant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">13.&#9;<U>Law Governing
This Warrant</U>. This Warrant shall be governed by and construed in accordance with the laws of the State of New York without
regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated
by this Warrant shall be brought only in the state courts of New York or in the federal courts located in the state and county
of New York. The parties to this Warrant hereby irrevocably waive any objection to jurisdiction and venue of any action instituted
hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon <U>forum non conveniens</U>. <B>The
Company and Holder waive trial by jury.</B> The prevailing party shall be entitled to recover from the other party its reasonable
attorney&rsquo;s fees and costs. In the event that any provision of this Warrant or any other agreement delivered in connection
herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative
to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such
provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision
of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any
suit, action or proceeding in connection with this Agreement or any other Transaction Document by mailing a copy thereof via registered
or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under
this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing
contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><I>[-Signature Page Follows-]</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">IN WITNESS WHEREOF,
the Company has executed this Warrant as of the date first written above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt"><B>BEESFREE, INC. </B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0; width: 50%">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0; width: 4%">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0; width: 46%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">By: </FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">Name: Joseph Fasciglione</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">Title:&nbsp;&nbsp;&nbsp;Interim Chief Executive Officer</FONT></TD></TR>
</TABLE>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">EXHIBIT&nbsp;A</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">FORM OF SUBSCRIPTION</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">(to be signed only on exercise of Warrant)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">TO: BEESFREE, INC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The undersigned, pursuant to the provisions
set forth in Warrant (No.____________), hereby irrevocably elects to purchase (check applicable box):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">___&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;________ shares of the Common Stock
covered by such Warrant; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">___</TD><TD STYLE="text-align: justify">shares of Common Stock covered by such Warrant pursuant to the cashless exercise procedure set
forth in Section&nbsp;2(b) of the Warrant.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The undersigned herewith makes payment
of the full purchase price for such shares at the price per share provided for in such Warrant, which is $___________. Such payment
takes the form of (check applicable box or boxes):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">___&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$__________ in lawful money of the
United States; and/or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">___</TD><TD STYLE="text-align: justify">the cancellation of such number of shares of Common Stock as is necessary, in accordance with the
formula set forth in Section&nbsp;2 of the Warrant, to exercise this Warrant with respect to the maximum number of shares of Common
Stock purchasable pursuant to the cashless exercise procedure set forth in Section&nbsp;2.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">After application of the cashless exercise
feature as described above, _____________ shares of Common Stock are required to be delivered pursuant to the instructions below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The undersigned requests that the certificates
for such shares be issued in the name of, and delivered to __________________________________________ whose address is ___________________________
__________________<U>&#9;&#9; </U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The undersigned represents and warrants
that all offers and sales by the undersigned of the securities issuable upon exercise of the within Warrant shall be made pursuant
to registration of the Common Stock under the Securities Act of 1933, as amended (the &ldquo;Securities Act&rdquo;), or pursuant
to an exemption from registration under the Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%; padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">Dated:</FONT></TD>
    <TD STYLE="width: 35%; padding: 0; text-indent: 0; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 15%; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 35%; padding: 0; text-indent: 0; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 10%; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">(Signature must conform to name of holder as <BR>
specified on the face of the Warrant)</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">(Address)</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>EXHIBIT&nbsp;B</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">FORM OF TRANSFEROR ENDORSEMENT</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(To be signed only on transfer of Warrant)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">For value received, the
undersigned hereby sells, assigns, and transfers unto the person(s) named below under the heading &ldquo;Transferees&rdquo; the
right represented by the within Warrant to purchase the percentage and number of shares of Common Stock of BEESFREE, INC. to which
the within Warrant relates specified under the headings &ldquo;Percentage Transferred&rdquo; and &ldquo;Number Transferred,&rdquo;
respectively, opposite the name(s) of such person(s) and appoints each such person Attorney to transfer its respective right on
the books of BEESFREE, INC. with full power of substitution in the premises.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 34%; border: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 10pt"><U>Transferees</U></FONT></TD>
    <TD STYLE="width: 33%; border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 10pt"><U>Percentage Transferred</U></FONT></TD>
    <TD STYLE="width: 33%; border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"><FONT STYLE="font-size: 10pt"><U>Number Transferred</U></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 38%; padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">Dated:&nbsp;&nbsp;__________________, _______</FONT></TD>
    <TD STYLE="width: 8%">&nbsp;</TD>
    <TD STYLE="width: 45%; padding: 0; text-indent: 0; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 9%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">(Signature must conform to name of holder as specified <BR>
on the face of the warrant)</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">Signed in the presence of:</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Name)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-align: left; text-indent: 0">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(address)</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-align: left; text-indent: 0">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: left; text-indent: 0">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-align: left; text-indent: 0">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: left; text-indent: 0">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-align: left; text-indent: 0"><FONT STYLE="font-size: 10pt">ACCEPTED AND AGREED:</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: left; text-indent: 0; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-align: left; text-indent: 0"><FONT STYLE="font-size: 10pt">[TRANSFEREE]</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding: 0; text-align: left; text-indent: 0; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(address)</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Name)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>



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