<SEC-DOCUMENT>0001144204-16-109258.txt : 20160622
<SEC-HEADER>0001144204-16-109258.hdr.sgml : 20160622
<ACCEPTANCE-DATETIME>20160622120656
ACCESSION NUMBER:		0001144204-16-109258
CONFORMED SUBMISSION TYPE:	DEFA14A
PUBLIC DOCUMENT COUNT:		6
FILED AS OF DATE:		20160622
DATE AS OF CHANGE:		20160622
EFFECTIVENESS DATE:		20160622

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			DGSE COMPANIES INC
		CENTRAL INDEX KEY:			0000701719
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-JEWELRY STORES [5944]
		IRS NUMBER:				880097334
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DEFA14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-11048
		FILM NUMBER:		161726069

	BUSINESS ADDRESS:	
		STREET 1:		15850 DALLAS PARKWAY
		STREET 2:		SUITE 140
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75248
		BUSINESS PHONE:		9725874049

	MAIL ADDRESS:	
		STREET 1:		15850 DALLAS PARKWAY
		STREET 2:		SUITE 140
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75248

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	DALLAS GOLD & SILVER EXCHANGE INC /NV/
		DATE OF NAME CHANGE:	19930114

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	AMERICAN PACIFIC MINT INC
		DATE OF NAME CHANGE:	19920703

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CANYON STATE CORP
		DATE OF NAME CHANGE:	19860819
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEFA14A
<SEQUENCE>1
<FILENAME>v442552_8k.htm
<DESCRIPTION>FORM 8-K
<TEXT>
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<P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><B>UNITED STATES</B></P>

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

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

<!-- Field: Rule-Page --><DIV ALIGN="CENTER" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 20%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<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: center"><B>FORM 8-K</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"></P>

<!-- Field: Rule-Page --><DIV ALIGN="CENTER" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 20%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<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-top: 0pt; margin-bottom: 0pt; text-align: center">&#9;<FONT STYLE="font-size: 12pt"><B>CURRENT
REPORT</B></FONT></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">&#9;<B>Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934</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>&#9;Date of Report</B> (Date of earliest
event reported):<B> June 22, 2016 </B>(June 20, 2016)</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>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>&#9;DGSE COMPANIES, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&#9;<FONT STYLE="font-size: 10pt">(Exact
name of Registrant as specified in its charter)</FONT></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"></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%; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Nevada</B></FONT></TD>
    <TD STYLE="width: 33%; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>1-11048</B></FONT></TD>
    <TD STYLE="width: 33%; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>88-0097334</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(State
    or other jurisdiction of</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif"> <BR>
    <FONT STYLE="font-size: 10pt">incorporation or organization)</FONT></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Commission
    </FONT><FONT STYLE="font-family: Times New Roman, Times, Serif"><BR>
    <FONT STYLE="font-size: 10pt">File Number)</FONT></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">(I.R.S.
                                         Employer</FONT></P>
                                                                              <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Identification
                                         No.)</FONT></P></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"></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>15850 Dallas Parkway, Suite 140</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Dallas, Texas 75248</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">Registrant&rsquo;s Telephone Number, including
area code: <B>(972) 587-4049</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Not Applicable &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&#9;(Former name or former address, if
changed since last report)</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"></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">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
(see General Instruction A.2.):</P>

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

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<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">Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)</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: 0.25in; text-align: left">&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</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: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&#120;</FONT></TD><TD STYLE="text-align: justify">Soliciting material pursuant to Rule 14a-12 under the
Exchange Act (17 CFR 240.14a-12)</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: 0.25in; text-align: left">&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</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: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD STYLE="text-align: justify">Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act (17 CFR 240.14d-2(b))</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: 0.25in; text-align: left">&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</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: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD STYLE="text-align: justify">Pre-commencement communications pursuant to Rule 13e-4(c)
under the Exchange Act (17 CFR 240.13e-4(c))</TD>
</TR></TABLE>

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


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

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<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.75in; text-align: left"><B>Item 1.01</B></TD><TD STYLE="text-align: justify"><B>Entry into a Material Definitive Agreement.</B></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; text-indent: 0.5in">On June 20, 2016, DGSE
Companies, Inc. (&ldquo;DGSE&rdquo; or the &ldquo;Company&rdquo;) entered into a stock purchase agreement (the &ldquo;Purchase
Agreement&rdquo;) with Elemetal, LLC (&ldquo;Elemetal&rdquo;), and NTR Metals, LLC (&ldquo;NTR&rdquo;), pursuant to which (i) DGSE
agreed to sell and issue to NTR shares of Common Stock at a stock price of $0.41 per share in exchange for the cancellation and
forgiveness of all amounts outstanding under that certain Loan Agreement between DGSE and NTR dated July 19, 2012 and an associated
$7,500,000 Revolving Credit Note of the same date executed by DGSE in favor of NTR (which indebtedness and accrued interest as
of June&nbsp;17, 2016 was $2,416,428.35), and (ii) DGSE agreed to sell and issue to Elemetal 8,536,585 shares of Common Stock at
a stock price of $0.41 per share and a warrant to purchase an additional 1,000,000 shares of Common Stock at an exercise price
of $0.65 per share (the &ldquo;Warrant&rdquo;) in exchange for the cancellation and forgiveness of $3,500,000 of trade payables
owed to Elemetal as a result of bullion-related transactions (together, the &ldquo;Transactions&rdquo;). In connection with the
closing of the Purchase Agreement, DGSE will enter into a registration rights agreement with NTR and Elemetal (the &ldquo;Registration
Rights Agreement&rdquo; and together with the Purchase Agreement and the Warrant, the &ldquo;Transaction Documents&rdquo;) providing
for, among other things, demand and piggyback registration rights with respect to the shares to be issued and registration procedures.
The closing of the Transactions is expected to take place following satisfaction of various closing conditions, including obtaining
the approval of DGSE&rsquo;s stockholders.</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">A summary of the material
provisions of the Transaction Documents is provided below. The descriptions of the Transaction Documents below are qualified in
their entirety by reference to the Purchase Agreement, form of Warrant and form of Registration Rights Agreement, which are filed
as Exhibits 10.1, 10.2 and 10.3, respectively.</P>

<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: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Price per share of Common Stock</I>.
The shares of Common Stock to be issued pursuant to the Purchase Agreement will be issued at a price of $0.41 per share.</FONT></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: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Timing of Issuance of Common Stock</I>.
The consummation of the sale and issuance to, and purchase by, NTR and Elemetal is to occur as soon as practicable after the satisfaction
or waiver of the conditions precedent set forth in the Purchase Agreement.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&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"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Exercise Price per Share for Warrant</I>.
The Warrant to be issued to Elemetal will have an exercise price of $0.65 per share. The exercise price is subject to adjustments
in the event of (i) reclassifications; (ii) subdivision or combination of shares; (iii) non-cash dividends; (iv) fundamental transactions;
and (v) certain other matters, each as set forth in more detail in Sections 3 and 4 of the Warrant.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&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"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Restricted Securities</I>. The shares
of Common Stock, and the warrant to purchase additional shares of Common Stock, and the shares of Common Stock issuable under exercise
of the warrant will be issued in a transaction not involving any public offering and will not be registered under the Securities
Act of 1933, as amended (the &ldquo;Securities Act&rdquo;) and, accordingly, will be deemed &ldquo;restricted securities&rdquo;
under Rule 144 promulgated under the Securities Act. </FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&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"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Representations, Warranties and Covenants.
</I>The Purchase Agreement contains customary representations, warranties and covenants by the Company, NTR and Elemetal. The Company
has agreed to call and hold a stockholders&rsquo; meeting and use its commercially reasonable efforts to secure all required approvals
with respect to the Transactions.</FONT></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 0pt 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&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"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Conditions Precedent</I>. The Purchase
Agreement contains certain conditions to closing, including that the Transactions shall have received (i) all requisite approvals
of the stockholders of the Company required pursuant to Nevada law, the Company&rsquo;s Articles of Incorporation and Bylaws and
the rules and regulations of the NYSE MKT and (ii) approval of a majority of the shares of Common Stock of the Company present
in person or proxy at a meeting of the Company&rsquo;s stockholders called for such purpose that are not owned, beneficially or
of record, by Elemetal, NTR or any of their respective affiliates. Additionally, a proposal to amend the Company&rsquo;s Articles
of Incorporation to increase the number of authorized shares of Common Stock (the &ldquo;Amendment Proposal&rdquo;) shall have
received all requisite approval of the stockholders of the Company, and the additional listing application for the shares to be
issued to Elemetal and NTR shall have been approved by the NYSE MKT.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&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"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Termination</I>. The Purchase Agreement
may be terminated and the Transactions abandoned at any time prior to the closing by mutual written consent of the Company, NTR
and Elemetal or by either the Company, NTR or Elemetal (i) after the Stockholder Meeting, if, at the Stockholder Meeting, the Transactions
do not receive the requisite approval of the Company&rsquo;s stockholders or the Amendment Proposal does not receive the requisite
approval of the Company&rsquo;s stockholders, or (ii) on or after December 31, 2016 if the Transactions have not been completed.
</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&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"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Warrant</I>. The Warrant represents
the right to acquire 1,000,000 shares of the Company&rsquo;s Common Stock at an exercise price of $0.65 per share. The Warrant
has a two-year term beginning on the date of the closing of the Transactions and is assignable by Elemetal. </FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><I>&nbsp;</I></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"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Registration Rights. </I>The Registration
Rights Agreement provides for piggyback registration rights in the event that the Company proposes to register any of its equity
securities for sale to the public, subject to certain exclusions. The Registration Rights Agreement also provides for six (6) requests
for registration on Form S-1 or Form S-3 (or any successor form) for a public offering of all or a portion of the registrable securities
held by Elemetal or NTR so long as such stockholder holds at least five percent (5%) of the shares of Common Stock outstanding
on the date of the Registration Rights Agreement.</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: 0pt 0; text-align: justify; text-indent: 0.5in">The Transactions were
recommended by a special committee of independent directors of the Company&rsquo;s Board of Directors and were approved by the
full Board of Directors, who recommended that they be submitted to the stockholders for approval.</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 June 21, 2016, the
Company issued a press release announcing that the Company entered into the Purchase Agreement. A copy of the press release is
filed as Exhibit 99.1 to this Current Report on Form 8-K.</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"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;<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: 0.75in; text-align: left"><B>Item 3.02.</B></TD><TD STYLE="text-align: justify"><B>Unregistered Sales of Equity Securities.</B></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; text-indent: 0.5in">The information disclosed
under Item 1.01 of this Current Report on Form 8-K is incorporated into this Item 3.02 in its entirety. DGSE is issuing the Common
Stock and the Warrant in reliance upon the exemption from registration under Section 4(2) of the Securities Act, and in reliance
upon issuance being a transaction by DGSE not involving any public offering. The shares of Common Stock, the Warrant, and the shares
of Common Stock issuable upon exercise of the Warrant, will be deemed &ldquo;restricted securities&rdquo; under Rule 144 promulgated
under the Securities Act.</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: 0.75in; text-align: left"><B>Item 5.01</B></TD><TD STYLE="text-align: justify"><B>Changes in Control of Registrant.</B></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 information disclosed under Item 1.01
of this Current Report on Form 8-K is incorporated into this Item 3.02 in its entirety.</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">As of April 15, 2016,
Elemetal beneficially owned 9,278,142 shares of Common Stock (including an option to purchase 5,000,000 shares of the
Company&rsquo;s common stock at a price of $15 per share, which option is vested and exercisable and expires on October 25,
2016), or 53.5%, of the issued and outstanding Common Stock of the Company (assuming exercise of the option). Excluding
shares covered by the option, Elemetal&rsquo;s ownership percentage of the issued and outstanding shares as of April 15, 2016
would have been approximately 34.7%. As of April 15, 2016, NTR (an affiliate of Elemetal) owned 416,900 shares of Common
Stock, or 3.4% of the issued and outstanding shares of Common Stock of the Company. Assuming the full exercise of the
Warrant, Elemetal will acquire a total of 9,536,585 shares of our Common Stock and NTR will acquire more than 5,893,727
shares of our Common Stock pursuant to the Transactions (the exact number of shares to be acquired by Elemetal will depend on
the outstanding principal and interest due under the Loan Agreement on the closing date of the Transactions). As a result, if
the Transactions close, Elemetal and NTR are expected to collectively beneficially own greater than 75% of the outstanding
Common Stock of the Company (assuming the exercise of both the option and the Warrant).</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: 0.75in; text-align: left"><B>Item 9.01.</B></TD><TD STYLE="text-align: justify"><B>Financial Statements and Exhibits.</B></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">(d)</TD><TD STYLE="text-align: justify">Exhibits</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&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: 15%; padding: 0; font-size: 10pt; font-weight: bold; text-align: justify; text-indent: 0"><b>Exhibit Number</b></td>
    <TD STYLE="width: 85%; padding: 0; font-size: 10pt; font-weight: bold; text-align: justify; text-indent: 0"><b>Description of Exhibit</b></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="padding: 0; font-size: 10pt; text-align: justify; text-indent: 0">&nbsp;</td>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: justify; text-indent: 0">&nbsp;</td></tr>
<tr style="vertical-align: top">
    <TD STYLE="padding: 0; font-size: 10pt; text-align: justify; text-indent: 0">10.1</td>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: justify; text-indent: 0">Stock Purchase Agreement, dated June 20, 2016, by and among the Company, Elemetal and NTR</td></tr>
<tr style="vertical-align: top">
    <TD STYLE="padding: 0; font-size: 10pt; text-align: justify; text-indent: 0">10.2</td>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: justify; text-indent: 0">Form of Warrant to Purchase Shares of Common Stock of the Company</td></tr>
<tr style="vertical-align: top">
    <TD STYLE="padding: 0; font-size: 10pt; text-align: justify; text-indent: 0">10.3</td>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: justify; text-indent: 0">Form of Registration Rights Agreement</td></tr>
<tr style="vertical-align: top">
    <TD STYLE="padding: 0; font-size: 10pt; text-align: justify; text-indent: 0">99.1</td>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: justify; text-indent: 0">Press Release issued by the Company dated June 21, 2016</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">&nbsp;</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: justify"><B><U>Important Information</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">This Current Report on Form 8-K shall not
constitute an offer to sell or the solicitation of an offer to buy any security. The shares of the Company&rsquo;s Common Stock,
the Warrant and the shares of the Company&rsquo;s Common Stock issuable upon exercise of the Warrant are being so issued and purchased
pursuant to an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws.</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 connection with its efforts to obtain
stockholder approval of the Transactions (as described above) and certain related matters, the Company will file with the SEC and
mail to its stockholders of record a Definitive Proxy Statement on Schedule 14A, which will contain information about the Company,
the Transactions and the related matters to be voted upon by the Company&rsquo;s stockholders at the Company&rsquo;s 2016 annual
meeting of stockholders. <B>STOCKHOLDERS ARE URGED TO READ THE DEFINITIVE PROXY STATEMENT ON SCHEDULE 14A CAREFULLY WHEN IT IS
AVAILABLE BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION.</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 addition to receiving the Definitive
Proxy Statement on Schedule 14A from the Company by mail, the Definitive Proxy Statement on Schedule 14A, as well as other filings
containing information about the Company, may also be obtained, without charge, from the SEC&rsquo;s website at <U>www.sec.gov</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 Company and its directors and executive
officers may be deemed to be participants in the solicitation of proxies. Information concerning the interests of the Company&rsquo;s
directors and executive officers in the Transactions will be set forth in the Definitive Proxy Statement on Schedule 14A. Other
information concerning the Company and its directors and executive officers is contained in the Company&rsquo;s other filings with
the SEC, including the Company&rsquo;s Annual Report on Form 10-K for the year ended December 31, 2015, which was filed with the
SEC on March 30, 2016 and amended on April 27, 2016 and the Company&rsquo;s Quarterly Report on Form 10-Q for the fiscal quarter
ended March 31, 2016 that was filed with the SEC on May 16, 2016.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</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"><FONT STYLE="font-size: 10pt">&#9;</FONT><B>SIGNATURES</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">Pursuant to the requirements
of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&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="padding: 0; font-weight: bold; text-align: justify; text-indent: 0">&nbsp;</td>
    <TD COLSPAN="2" STYLE="padding: 0; font-size: 12pt; font-weight: bold; text-align: justify; text-indent: 0"><B>DGSE COMPANIES, INC.</B></td>
    <TD STYLE="padding: 0; font-size: 12pt; text-align: justify; text-indent: 0">&nbsp;</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: 30%">&nbsp;</td>
    <TD STYLE="padding: 0; text-indent: 0; width: 16%">&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-align: justify; text-indent: 0">&nbsp;</td>
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0">By:</td>
    <TD STYLE="padding: 0; text-decoration: none; text-align: justify; text-indent: 0; border-bottom: Black 1pt solid">/s/
    MATTHEW PEAKES</td>
    <TD STYLE="padding: 0; font-weight: bold; text-align: justify; text-indent: 0">&nbsp;</td></tr>
<tr style="vertical-align: top">
    <TD STYLE="padding: 0; font-weight: bold; text-indent: 0">&nbsp;</td>
    <TD STYLE="padding: 0; font-weight: bold; text-indent: 0">&nbsp;</td>
    <TD STYLE="padding: 0; font-weight: bold; text-indent: 0"><font style="font-size: 10pt; font-weight: normal">Matthew Peakes</font></td>
    <TD STYLE="padding: 0; font-weight: bold; text-indent: 0">&nbsp;</td></tr>
<tr style="vertical-align: top">
    <TD STYLE="padding: 0; font-weight: bold; font-style: italic; text-indent: 0">&nbsp;</td>
    <TD STYLE="padding: 0; font-weight: bold; font-style: italic; text-indent: 0">&nbsp;</td>
    <TD STYLE="padding: 0; font-weight: bold; font-style: italic; text-indent: 0"><font style="font-size: 10pt; font-style: normal">Chief Executive Officer </font></td>
    <TD STYLE="padding: 0; font-weight: bold; font-style: italic; text-indent: 0">&nbsp;</td></tr>
<tr style="vertical-align: top">
    <TD STYLE="padding: 0; font-weight: bold; font-style: italic; text-indent: 0">&nbsp;</td>
    <TD STYLE="padding: 0; font-weight: bold; font-style: italic; text-indent: 0">&nbsp;</td>
    <TD STYLE="padding: 0; font-weight: bold; font-style: italic; text-indent: 0">&nbsp;</td>
    <TD STYLE="padding: 0; font-weight: bold; font-style: italic; text-indent: 0">&nbsp;</td></tr>
<tr style="vertical-align: top">
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0">Date: June 22, 2016</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>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</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 0pt 0.5in; text-align: center; text-indent: -0.5in"><B>Exhibit
Index</B></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>

<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: 15%; padding: 0; font-weight: bold; text-align: justify; text-indent: 0"><b>Exhibit Number</b></td>
    <TD STYLE="width: 85%; padding: 0; font-weight: bold; text-align: justify; text-indent: 0"><b>Description of Exhibit</b></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></tr>
<tr style="vertical-align: top">
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0">10.1</td>
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0">Stock Purchase Agreement, dated June 20, 2016, by and among the Company, Elemetal and NTR</td></tr>
<tr style="vertical-align: top">
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0">10.2</td>
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0">Form of Warrant to Purchase Shares of Common Stock of the Company</td></tr>
<tr style="vertical-align: top">
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0">10.3</td>
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0">Form of Registration Rights Agreement</td></tr>
<tr style="vertical-align: top">
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0">99.1</td>
    <TD STYLE="padding: 0; text-align: justify; text-indent: 0">Press Release issued by the Company dated June 21, 2016</td></tr>
</table>
<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="margin: 0"></P>

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>v442552_ex10-1.htm
<DESCRIPTION>EXHIBIT 10.1
<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; text-align: right"><B>Exhibit 10.1</B></P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">This Stock Purchase Agreement
(this &ldquo;<U>Agreement</U>&rdquo;) is entered into as of the 20<SUP>th</SUP> day of June, 2016, by and between DGSE Companies,
Inc., a corporation organized and existing under the laws of the State of Nevada (the &ldquo;<U>Company</U>&rdquo;), Elemetal,
LLC, a limited liability company organized and existing under the laws of the State of Delaware (&ldquo;<U>Elemetal</U>&rdquo;),
and NTR Metals, LLC, a limited liability company organized and existing under the laws of the State of Texas (&ldquo;<U>NTR</U>&rdquo;,
and together with Elemetal, the &ldquo;<U>Purchasers</U>&rdquo;).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">WHEREAS, the Company desires
to sell to the Purchasers, and the Purchasers desire to purchase from the Company, shares of the Company&rsquo;s common stock,
par value $.01 per share (the &ldquo;<U>Common Stock</U>&rdquo;), on the terms and subject to the conditions set forth in this
Agreement; and</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">WHEREAS, the Company desires
to issue to Elemetal, and Elemetal desires to receive from the Company, a warrant to purchase additional shares of Common Stock,
on the terms and subject to the conditions set forth in this Agreement and the Warrant (as defined herein).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">NOW, THEREFORE, in consideration
of the premises and the representations, warranties, covenants and agreements contained in this Agreement, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, the parties
hereby agree as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; color: #010000"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="color: #010000"><B>Article 1</B></FONT><B><BR>
<BR>
Purchase and Sale</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">1.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Purchase
and Sale Transaction</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Subject
to the terms and conditions of this Agreement, the Company hereby agrees to issue and sell to Elemetal, and Elemetal hereby agrees
to purchase from the Company: (i) an aggregate of 8,536,585 shares of Common Stock (the &ldquo;<U>Elemetal Shares</U>&rdquo;) at
a purchase price of U.S.$0.41 per share, which Elemetal Shares shall be sold and issued to, and purchased by, Elemetal at the Closing;
and (ii) a warrant (the &ldquo;<U>Warrant</U>&rdquo;), substantially in the form attached hereto as <U>Exhibit A</U>, to purchase
an additional 1,000,000 shares of Common Stock (the &ldquo;<U>Warrant Shares</U>&rdquo;) at an exercise price of U.S. $0.65 per
Warrant Share. The purchase price for the Elemetal Shares and the Warrant shall be payable by the cancellation and forgiveness
of $3,500,000 of the total debt owed by the Company to Elemetal (the &ldquo;<U>Elemetal Indebtedness</U>&rdquo;) as a result of
bullion-related transactions (the &ldquo;<U>Elemetal Consideration</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Subject
to the terms and conditions of this Agreement, the Company hereby agrees to issue and sell to NTR, and NTR hereby agrees to purchase
from the Company such number of whole shares of Common Stock (the &ldquo;<U>NTR Shares</U>&rdquo;) equal to the NTR Indebtedness
(as defined below) divided by the purchase price of U.S. $0.41 per share, which NTR Shares shall be sold and issued to, and purchased
by, NTR at the Closing. The purchase price for the NTR Shares shall be payable by the cancellation and forgiveness of the debt
owed by the Company to NTR as of the Closing (the &ldquo;<U>NTR Indebtedness</U>&rdquo;) as a result of that certain Loan Agreement
between the Company and NTR dated July 19, 2012 and an associated $7,500,000 Revolving Credit Note of the same date executed by
the Company in favor of NTR (the &ldquo;<U>NTR Consideration</U>&rdquo;, and together with the Elemetal Consideration, the &ldquo;<U>Aggregate
Consideration</U>&rdquo;). No fractional shares shall be issued.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The
parties hereto agree that (i) upon the issuance and delivery by the Company of the Elemetal Shares and the Warrant, the Elemetal
Indebtedness shall be fully satisfied, and (ii) upon the issuance and delivery by the Company of the NTR Shares, the NTR Indebtedness
shall be fully satisfied.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The
purchase and sale transactions contemplated in <U>Section 1.1(a)</U> and <U>Section 1.1(b)</U>, the satisfaction of the Elemetal
Indebtedness and the NTR Indebtedness contemplated in <U>Section 1.1(c)</U>, together with all other transactions contemplated
by this Agreement, are sometimes hereinafter referred to, collectively, as the &ldquo;<U>Transactions</U>.&rdquo; The Elemetal
Shares and the NTR Shares are sometimes hereinafter referred to, collectively, as the &ldquo;<U>Securities</U>&rdquo; and, individually,
as a &ldquo;<U>Security</U>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">1.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Closing</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The
consummation of the sale and issuance to, and purchase by, the Purchasers of the Securities and of the delivery to Elemetal of
the Warrant (the &ldquo;<U>Closing</U>&rdquo;) shall take place at such time as shall be fixed by mutual agreement of the Company
and the Purchasers as promptly as practicable after the satisfaction or waiver of all of the conditions precedent set forth under
<U>Article 5</U>. At the Closing, (i) Elemetal shall deliver to the Company evidence of the Elemetal Consideration in form and
substance acceptable to the Company, (ii) the Company shall deliver to Elemetal (A) a stock certificate (or evidence of book-entry
issuance) representing the Elemetal Shares and (B) the Warrant, (iii) NTR shall deliver to the Company evidence of the NTR Consideration
in form and substance acceptable to the Company and (iv) the Company shall deliver to NTR a stock certificate (or evidence of book-entry
issuance) representing the NTR Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The
Closing shall be held at the offices of the Company, at 15850 Dallas Parkway, Suite 140, Dallas, Texas, 75248.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; color: #010000"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="color: #010000"><B>Article 2</B></FONT><B><BR>
<BR>
Representations and Warranties of the Company</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company represents
and warrants to the Purchasers as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">2.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Organization;
Good Standing; Qualification and Power.</U> &nbsp;The Company is a corporation duly organized, validly existing and in good standing
under the laws of the State of Nevada, has all requisite power and authority to own, lease and operate its assets and to carry
on its business as presently being conducted, and is qualified to do business and is in good standing in every jurisdiction in
which the failure so to qualify or be in good standing could reasonably be expected to have a Material Adverse Effect (as defined
below) on the Company</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">2.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Authorization</U>.
The Company has all requisite power and authority to execute and deliver this Agreement, the Securities, the Warrant and the Warrant
Shares and any and all instruments necessary or appropriate in order to effectuate fully the terms thereof and all related transactions
and to perform its obligations thereunder. The execution and delivery by the Company of this Agreement have been duly authorized
by all requisite corporate action of the Company. Except for the Required Shareholder Approval and the authorizations, consents,
waivers and approvals to be obtained at or prior to the Closing, the performance by the Company of its obligations hereunder and
the issuance, sale and delivery of the Securities, the Warrant and the Warrant Shares have been duly authorized by all requisite
corporate action of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">2.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>No
Conflict</U>. Neither the execution and delivery by the Company of this Agreement, the performance by the Company of its obligations
hereunder nor the issuance, sale and delivery of the Securities and the Warrant will result in any violation of, be in conflict
with, result in the acceleration of, create in any party the right to accelerate, terminate, modify or cancel or constitute a default
under or result in the imposition of any lien under, with or without the passage of time or the giving of notice: (a) any provision
of the Company&rsquo;s Articles of Incorporation, as amended, restated or modified (the &ldquo;<U>Articles of Incorporation</U>&rdquo;)
or Bylaws, as amended, restated or modified (the &ldquo;<U>Bylaws</U>&rdquo;); (b) any provision of any judgment, decree or order
to which the Company is a party or by which it is bound; (c) any material contract or agreement to which the Company is a party
or by which it is bound; or (d) assuming receipt of the Required Shareholder Approval (as defined herein), any statute, rule or
governmental regulation applicable to the Company or its assets; except, in the case of each of the foregoing, where such violation,
conflict, termination, lien, cancellation, modification or default would not have a Material Adverse Effect (as hereinafter defined)
and except, in the case of each of the foregoing, provisions, contracts, agreements, statutes, rules or governmental regulations
as to which authorizations, consents, amendments, waivers and approvals will have been obtained or effected at or prior to the
Closing. Other than state blue sky securities filings, the filing of a Form D with the Securities and Exchange Commission (the
&ldquo;<U>SEC</U>&rdquo;), any securities filings with foreign governments or agencies or any consents that have been obtained,
the Company has not been or is not required to give any notice to, make any filing with, or obtain any authorization, consent or
approval of any governmental entity for the execution and delivery of this Agreement, the Securities or the Warrant. As used herein,
the term &ldquo;<U>Material Adverse Effect</U>&rdquo; shall mean any effect, change, event, state of fact, development, circumstance
or condition (including changes in laws, rules or regulations applicable to the Company and its business) which, when considered
individually or in the aggregate with all other effects, changes, events, state of facts, developments, circumstances and conditions,
has materially and adversely affected, or could reasonably be expected to materially and adversely affect, the results of operations,
financial condition, assets, liabilities, or business of the Company and its subsidiaries taken as a whole; <I>provided, however</I>,
that a &ldquo;Material Adverse Effect&rdquo; shall not be deemed to include (i) any changes resulting from general economic or
political conditions, (ii) circumstances that affect the precious metals industry and/or the retail jewelry industry generally
or (iii) force majeure events, acts of terrorism or acts of war.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">2.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Valid
Issuance of Securities and the Warrant Shares</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>When
issued, sold and delivered in accordance with this Agreement to the Purchasers upon the Purchasers&rsquo; delivery of the Aggregate
Consideration to the Company therefor as provided hereby, the Securities and the Warrant will have been duly authorized, validly
issued, fully paid and nonassessable with no personal liability attaching to the ownership thereof and will be free and clear of
all liens, charges and encumbrances of any nature whatsoever except for restrictions on transfer under this Agreement and under
applicable federal and state securities laws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Upon
the Purchasers&rsquo; delivery of the exercise price for the Warrant Shares (as set forth in the Warrant), the Warrant Shares will
have been duly authorized and will be validly issued, and the Warrant Shares will be fully paid and nonassessable with no personal
liability attaching to the ownership thereof and will be free and clear of all liens, charges and encumbrances of any nature whatsoever
except for restrictions on transfer under this Agreement and under applicable federal and state securities laws</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">2.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Validity</U>.
This Agreement has been duly executed and delivered by the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">2.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Compliance
with Laws; Organizational Documents.</U> The Company (a) has complied in all material respects with, and is in material compliance
with, all laws applicable to it and its business, and (b) has all permits necessary for the conduct of its business as presently
conducted, other than such permits that, if not obtained, could not reasonably be expected to have a Material Adverse Effect on
the Company. Such permits are in full force and effect, the Company has not received notice of any material violations with respect
to any thereof, and no material proceeding is pending or threatened to revoke or limit any thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">2.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Capitalization
of the Company</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 4.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(a) Immediately prior to
the Closing, (i) the authorized capital stock of the Company consisted of the classes and amounts set forth on <U>Schedule A</U>
hereto, and (ii) the issued and outstanding capital stock of the Company (separated by class and series) was as set forth on <U>Schedule
B</U> hereto.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(b) Except as set forth
in the Company&rsquo;s filings with the SEC or as set forth on <U>Schedule C</U> hereto, there are no (i) outstanding warrants,
options, rights, agreements, convertible securities or other commitments or instruments pursuant to which the Company is or may
become obligated to issue or sell any shares of its capital stock or other securities or (ii) preemptive or similar rights to purchase
or otherwise acquire shares of the capital stock or other securities of the Company pursuant to any provision of law, the Company&rsquo;s
Articles of Incorporation or Bylaws or any contract to which the Company, or to the Company&rsquo;s Knowledge, any stockholder
(other than Purchasers or their Affiliates) thereof, is a party. As used herein, the Company&rsquo;s &ldquo;Knowledge&rdquo; means
the actual knowledge of Matthew Peakes or Nabil Lopez.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">2.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Intellectual
Property</U>. There is no pending or, to the Company&rsquo;s Knowledge, threatened claim or litigation against the Company asserting
that the Company infringes upon or otherwise violates any intellectual property right of any person. No Proceedings in which the
Company alleges that any person is infringing upon, or otherwise violating, any intellectual property right owned by the Company
are pending, and none have been served by, instituted or asserted by the Company, nor, to the Company&rsquo;s Knowledge, are any
proceedings threatened alleging any such violation or infringement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">2.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Material
Agreements</U>. (a) There is no material breach or default by the Company or, to the Company&rsquo;s Knowledge, any other party
under any contract to which the Company or any of its subsidiaries is a party that is material to the Company&rsquo;s business,
operations, assets, financial condition or operating results (each, a &ldquo;<U>Material Agreement</U>&rdquo;) and (b) each Material
Agreement is in full force and effect, constitutes the valid and binding obligation of the Company, and, to its Knowledge, the
respective other parties thereto (assuming due execution by the parties other than the Company or its subsidiaries, as applicable),
and is enforceable in accordance with its terms, except as enforceability thereof may be limited by applicable bankruptcy, reorganization,
insolvency or other laws affecting creditors&rsquo; rights generally or by general principles of equity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">2.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Brokers
and Finders</U>. On behalf of the Company, there is no agent, broker, investment banker, consultant, Person or firm that has acted
on behalf, or under the authority of, the Company or, to the Company&rsquo;s Knowledge, any of its stockholders (other than Purchasers
or their Affiliates), or will be entitled to any fee or commission directly or indirectly from the Company or, to the Company&rsquo;s
Knowledge, any of its stockholders (other than Purchasers or their Affiliates), in connection with the Transactions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">2.11&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Financial
Statements</U>. The Company has filed with the SEC its audited balance sheet as of December 31, 2015 (the &ldquo;<U>Statement Date</U>&rdquo;),
and the audited statements of income and cash flows for the year ending on the Statement Date (together, the &ldquo;<U>Audited
Financial Statements</U>&rdquo;), and its unaudited balance sheet as of March&nbsp;31, 2016, and the unaudited statements of income
and cash flows for the quarter ended March&nbsp;31, 2016 (together, the &ldquo;<U>Unaudited Financial Statements</U>&rdquo;). The
Audited Financial Statements and the Unaudited Financial Statements, together with the notes thereto, have been prepared in accordance
with generally accepted accounting principles in the United States, consistently applied throughout the periods indicated, subject
in the case of the Unaudited Financial Statements, to normal year-end adjustments, and present fairly in all material respects
the financial condition and position and results of operation of the Company as of the Statement Date or March 31, 2016, as applicable,
and for the periods indicated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">2.12&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>No
Consent or Approval Required</U>. Other than the Required Shareholder Approval, no consent, approval or authorization of, or declaration
to or filing with, any person is required by the Company for the valid authorization, execution and delivery by the Company of
this Agreement, the Securities or the Warrant or for the consummation of the Transactions, other than (a) those consents, approvals,
authorizations, declarations or filings that have been obtained or made, as the case may be, and (b) filings pursuant to federal
or state securities and any other applicable laws (all of which filings have been made by the Company, other than those which are
required to be made after the Closing, and which will be duly made in accordance with time periods under applicable laws) in connection
with the sale of the Securities and the Warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">2.13&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Changes</U>.
Except as set forth in the Company&rsquo;s Quarterly Report on Form 10-Q for the quarter ended March 31, 2016 or in Current Reports
on Form 8-K filed since March 31, 2016, or as set forth on <U>Schedule D</U> hereto, since March 31, 2016, there has not been:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 31.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 31.5pt">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
change in or effect on the assets, liabilities, financial condition, prospects or operations of the Company from that reflected
in the Unaudited Financial Statements, other than changes in the ordinary course of business, none of which individually or in
the aggregate has had or could reasonably be expected to have a Material Adverse Effect on the Company;</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 31.5pt">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
waiver by the Company of a material right of the Company or a material debt owed to the Company;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 31.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 31.5pt">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
sale, assignment, license or transfer of ownership of any intellectual property rights, other than in the ordinary course of business;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 31.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 31.5pt">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
change in any Material Agreement that has had or could reasonably be expected to have a Material Adverse Effect on the Company;
or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 31.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 31.5pt">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
other event or condition of any character that, either individually or cumulatively, has had or could reasonably be expected to
have a Material Adverse Effect on the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">2.14&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Absence
of Undisclosed Liabilities</U>. The Company has no material Liabilities, except (a) to the extent reflected or reserved against
on the balance sheet disclosed in the Unaudited Financial Statements and (b) liabilities arising in the ordinary course of business
consistent with past practice since March 31, 2016. There are no material loss contingencies (as such term is used in Statement
of Financial Accounting Standards No. 5, or any successor thereto, issued by the Financial Accounting Standards Board) of or affecting
the Company that are required to be disclosed or for which adequate provision was required to be made on the balance sheet included
in the Unaudited Financial Statements that have not been disclosed or for which adequate provision has not been made on the balance
sheet included in the Unaudited Financial Statements or in the notes thereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">2.15&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Insurance</U>.
The Company maintains adequate insurance covering the risks of the Company, if any, of such types and in such amounts and with
such deductibles as are customary for other companies of a similar size engaged in similar lines of business. All insurance held
by the Company is in full force and effect and is issued by insurers of recognized responsibility.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">2.16&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Title
to Assets, Properties and Rights</U>. The Company has good and marketable title (or a valid leasehold interest or license) to all
of the assets (whether real, personal or mixed) reflected as being owned (or leased or licensed) by the Company on the balance
sheet included in the Unaudited Financial Statements (except for those assets subsequently disposed of in the ordinary course of
business), free and clear of all liens, except for (a) liens for current taxes, assessments and other governmental charges not
yet due and payable and for which adequate reserves have been established on the books of the Company; (b) easements, covenants,
conditions and restrictions (whether or not of record) as to which no material violation or encroachment exists or, if such violation
or encroachment exists, as to which the cure of such violation or encroachment would not materially interfere with the conduct
of the Company&rsquo;s business as presently conducted; (c) any zoning or other governmentally established restrictions or encumbrances;
(d) worker&rsquo;s or unemployment compensation liens arising in the ordinary course of business; (e) mechanic&rsquo;s, materialman&rsquo;s,
supplier&rsquo;s, vendor&rsquo;s or similar liens arising in the ordinary course of business securing amounts that are not delinquent;
(f) those liens that do not, individually or cumulatively, have or could reasonably be expected to have a Material Adverse Effect
on the Company; and (g) liens set forth on <U>Schedule E</U> hereto.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">2.17&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Taxes</U>.
The Company has timely filed all material tax returns that are required to be filed, and has paid all Taxes as shown on such returns
and on all assessments received by it to the extent that such taxes have become due, except to the extent the Company is contesting
any such assessment in good faith. All such returns were true and correct in all material respects. Except as described in the
Company&rsquo;s filings with the SEC, the Company has not received notice of any material tax deficiency proposed or assessed against
it, and has not executed any waiver of any statute of limitations on the assessment or collection of any tax that has not yet expired.
Except as described in the Company&rsquo;s filings with the SEC, none of the Company&rsquo;s tax returns is currently being audited
by governmental authorities, and no taxing authority has notified the Company, orally or in writing, that such taxing authority
will or may audit any such return.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">2.18&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Litigation
and Other Proceedings</U>. There are no proceedings pending or, to the Company&rsquo;s Knowledge, threatened against the Company,
whether at law or in equity, whether civil or criminal in nature, that could reasonably be expected to have, either individually
or in the aggregate, a Material Adverse Effect on the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">2.19&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Proxy
Statements</U>. The Proxy Statements (as defined below) will not, on the dates first mailed to stockholders and at the time of
the Company Stockholder Meeting (as defined below), contain any untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which
they are made, not misleading; <I>provided</I>, that no representation is made as to information in the Proxy Statements that is
provided or supplied by Purchasers or their Affiliates or representatives. The Proxy Statements will comply as to form in all material
respects with the applicable provisions of the Securities Act of 1933 (the &ldquo;<U>Securities Act</U>&rdquo;) and the Securities
Exchange Act of 1934.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">2.20&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Board
Recommendation; Required Vote</U>. The Board of Directors of the Company, at a meeting duly called and held, by unanimous vote
of all of the members of the Board of Directors of the Company has (i) in all respects approved the Transactions and the Amendment
(as defined below); (ii) resolved to recommend that the stockholders of the Company approve the Transactions and the Amendment;
and (iii) directed that the approval of the Transactions and Amendment be submitted to stockholders of the Company for consideration
in accordance with this Agreement, which resolutions as of the date of this Agreement, have not been subsequently rescinded, modified
or withdrawn in any way (collectively, the &ldquo;<U>Board Recommendation</U>&rdquo;). The Required Shareholder Approval is the
only vote of the holders of capital stock of the Company necessary to approve the Transactions and the Amendment.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="color: #010000"><B>Article 3</B></FONT><B><BR>
<BR>
Representations and Warranties of the Purchasers</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Purchasers severally
and not jointly represent and warrant to the Company as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">3.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Authorization</U>.
The execution and delivery by each Purchaser of this Agreement and the performance by each Purchaser of its obligations hereunder
have been duly authorized by all requisite limited liability company action of each Purchaser.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">3.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>No
Conflict</U>. Neither the execution and delivery by either Purchaser of this Agreement nor the performance by either Purchaser
of its obligations hereunder will result in any violation of, be in conflict with, or constitute a default under, with or without
the passage of time or the giving of notice: (a) any provision of either Purchaser&rsquo;s governing documents; (b) any provision
of any judgment, decree or order to which either Purchaser is a party or by which it is bound; (c) any material contract or agreement
to which either Purchaser is a party or by which it is bound; or (d) any statute, rule or governmental regulation applicable to
either Purchaser; except, in the case of each of the foregoing, provisions, contracts, agreements, statutes, rules or governmental
regulations as to which authorizations, consents, amendments, waivers and approvals will have been obtained or effected at or prior
to the Closing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">3.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Validity</U>.
This Agreement has been duly executed and delivered by each Purchaser and, assuming due and valid authorization, execution and
delivery hereof by the Company, constitutes the legal, valid and binding obligation of each Purchaser, enforceable against each
Purchaser in accordance with its terms except: (a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium
and other laws of general application affecting enforcement of creditors&rsquo; rights generally; and (b) as limited by laws relating
to the availability of specific performance, injunctive relief or other equitable remedies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">3.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Investment
Representations</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Each
Purchaser: (i) is an &ldquo;accredited investor&rdquo; within the meaning of Rule 501 of Regulation D promulgated under the Securities
Act, and was not organized for the specific purpose of acquiring the Securities, the Warrant or the Warrant Shares; or (ii) is
not a &ldquo;U.S. Person&rdquo; within the meaning of Rule 902 of Regulation S promulgated under the Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Each
Purchaser has sufficient investment knowledge and experience so as to be able to evaluate the risks and merits of its investment
in the Company, and each Purchaser is able financially to bear the risks of its investment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>It
is the present intention that the Securities being purchased by each Purchaser are being acquired (and, to the extent the Warrant
is exercised, the Warrant Shares will be acquired) for such Purchaser&rsquo;s own account for the purpose of investment and not
with a present view to or for sale in connection with any distribution thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Each
Purchaser understands that: (i) none of the Securities, the Warrant or the Warrant Shares have been registered under the Securities
Act by reason of their issuance in a transaction exempt from the registration requirements of the Securities Act pursuant to Section
4(a)(2) thereof or Rule 506 or 903 promulgated under the Securities Act; (ii) the Securities must be held indefinitely (or, in
the case of the Warrant, until the exercise in full or expiration or termination thereof) unless a subsequent disposition thereof
is registered under the Securities Act or is exempt from such registration; (iii) the Warrant and each stock certificate representing
the Elemetal Shares, the NTR Shares, and, to the extent the Warrant is exercised, any stock certificate representing the Warrant
Shares acquired upon such exercise will bear a legend, among others, to the effect of clauses (i) and (ii) above; and (iv) the
Company will make a notation on its transfer books to the effect of clauses (i) and (ii) above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Each
Purchaser acknowledges that the Company has made available to such Purchaser all documents and information that such Purchaser
has requested relating to the Company, the Securities, the Warrant Shares, this Agreement and the Transactions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">3.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Legends</U>.
Each Purchaser understands that the representatives of the Company will make notations in the appropriate records of the Company
of the restrictions on the transferability of the Securities and the Warrant Shares and may stamp or affix to any document or instrument
representing the Securities or Warrant Shares an appropriate legend stating, in effect, that the resale of the Securities or Warrant
Shares has not been registered under the Securities Act and that transfers thereof must be made in accordance with an available
exemption from registration under the Securities Act or in a transaction registered under the Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">3.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Litigation</U>.
There are no actions, suits or proceedings of any nature pending or, to the knowledge of either Purchaser, threatened against or
by either Purchaser, any Affiliate of either Purchaser, any of its properties or any of their managers, officers or directors (in
their capacities as such) that challenge or seek to prevent, enjoin or otherwise delay the Transactions. To the knowledge of each
Purchaser, no event has occurred or circumstances exist that may give rise to or serve as a basis for any such action, suit or
proceeding. As used herein, &ldquo;<U>Affiliate</U>&rdquo; means, as to either Purchaser, any other person that, directly or indirectly
through one or more intermediaries, controls, is controlled by, or is under common control with such Purchaser, whether by contract,
voting power, or otherwise. The word &ldquo;<U>control</U>&rdquo; means the right to direct, whether by means of the holding of
shares or the possession of voting power, via contract or otherwise, the affairs of such person, firm, or company. Without limiting
the foregoing, a person is deemed to be an Affiliate of either Purchaser if such Purchaser owns, directly or indirectly, 50% or
of the voting securities of the specified person.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">3.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Disclosure
of Certain Information</U>. Each Purchaser understands and acknowledges that the Company may be required to disclose to the SEC
this Agreement and information relating to this Agreement, and hereby agrees that the Company, in its discretion, may disclose
this Agreement and such information to the SEC at such time and in such manner as the Company deems reasonable or necessary.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">3.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Brokers
and Finders</U>. On behalf of either Purchaser or its Affiliates (other than the Company and its subsidiaries), there is no agent,
broker, investment banker, consultant, Person or firm that has acted on behalf, or under the authority of, either Purchaser or
its Affiliates or, to such Purchaser&rsquo;s knowledge, any of its stockholders, or will be entitled to any fee or commission directly
or indirectly from either Purchaser or its Affiliates or, to such Purchaser&rsquo;s knowledge, any of its stockholders in connection
with the Transactions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">3.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>No
Rights as Stockholder</U>. Each Purchaser acknowledges that, except as otherwise provided herein, its purchase obligations under
this Agreement will not entitle such Purchaser to any of the rights, including, without limitation, voting rights, information
rights and rights to receive dividends or distributions, of a stockholder of the Company until the Closing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; color: #010000"><B>&nbsp;</B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; color: #010000"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="color: #010000"><B>Article 4</B></FONT><B><BR>
<BR>
Covenants and Agreements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">4.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Cooperation;
Commercially Reasonable Efforts</U>. The Company and the Purchasers shall cooperate with each other and use their respective commercially
reasonable efforts to take or cause to be taken all actions, and do or cause to be done all things, necessary, proper or advisable
under this Agreement and applicable laws, rules and regulations to consummate and make effective the Transactions and the Amendment
as soon as practicable, including preparing and filing as promptly as practicable all documentation to effect all necessary applications,
notices, proxy statements, filings and other documents and to obtain as promptly as practicable all approvals of the Company&rsquo;s
stockholders described in <U>Section 5.1(a)</U> and <U>Section 5.1(b)</U> and all approvals, permits, consents and authorizations
necessary or advisable to be obtained from the any third party and/or any governmental entity in order to consummate the Transactions
and to effect the Amendment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">4.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Proxy
Statement; Company Stockholder Meeting</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>As
promptly as practicable after the date of this Agreement, the Company shall prepare and file with the SEC a Notice of Meeting and
Preliminary Proxy Statement relating to a meeting of the Company&rsquo;s stockholders (the &ldquo;<U>Company Stockholder Meeting</U>&rdquo;)
to be held for the purpose of voting on the Transactions and other matters as may be deemed necessary or advisable by the Company,
including, without limitation, an amendment of the Company&rsquo;s Articles of Incorporation to increase the number of authorized
shares of Common Stock (the &ldquo;<U>Amendment</U>&rdquo;). As promptly as practicable after filing such Notice of Meeting and
Preliminary Proxy Statement, but in any event subject to the rules and regulations of the SEC, the Company shall prepare and file
with the SEC, and mail to its stockholders of record as of the close of business on the record date established by the Company
for the Company Stockholder Meeting (the &ldquo;<U>Record Stockholders</U>&rdquo;), a Notice of Meeting and Definitive Proxy Statement
relating to the Company Stockholder Meeting. The Notice of Meeting and Preliminary Proxy Statement and Notice of Meeting and Definitive
Proxy Statement are sometimes hereinafter referred to as the &ldquo;<U>Proxy Statements</U>.&rdquo; A reasonable time prior to
the mailing thereof, the Purchasers shall have the opportunity to review the Proxy Statements and the Company shall review and
consider all reasonable revisions proposed by the Purchasers to the extent reasonably satisfactory to the Purchasers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The
Purchasers shall furnish all information concerning the Purchasers as the Company may reasonably request in connection with the
preparation of the Proxy Statements, including, without limitation, any information in response to comments received from the SEC,
if applicable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The
Company Stockholder Meeting shall be called for a date which, after taking into consideration the provisions of the Articles of
Incorporation and Bylaws, the Nevada Corporations Code, the rules and regulations of the SEC and the NYSE MKT and the recommendations
of any proxy solicitor engaged by the Company with respect to the Company Stockholder Meeting and the Transactions, is as prompt
as practicable after the Notice of Meeting and Definitive Proxy Statement is filed with the SEC and mailed to the Record Stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The
Company shall use its commercially reasonable efforts to secure all required authorizations, consents, waivers, amendments and
approvals with respect to the Transactions and the Amendment, including, without limitation, the stockholder approvals described
in <U>Section 5.1(a)</U> and contemplated by the Proxy Statements, including postponing or adjourning the Company Stockholder Meeting
(i) for the absence of a quorum, (ii) to allow reasonable additional time for any supplemental or amended disclosure necessary
under applicable law and for such supplemental or amended disclosure to be disseminated and reviewed by the stockholders prior
to the Company Stockholder Meeting or (iv) to allow additional solicitation of votes in order to obtain the Required Shareholder
Approval.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>At
the Company Stockholder Meeting, the Purchasers shall vote all of the shares of the Common Stock which they currently beneficially
own, whether directly or indirectly, in favor of the Amendment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">4.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Additional
Listing Application</U>. As promptly as practicable after the date of this Agreement, but in any event after taking into consideration
the rules and regulations of the NYSE MKT with respect to the timing of, and supporting documents required to accompany, the Additional
Listing Application (as hereinafter defined), the Company shall submit to the NYSE MKT an additional listing application relating
to the Securities and the Warrant Shares (the &ldquo;<U>Additional Listing Application</U>&rdquo;) and shall use its commercially
reasonable efforts to secure the NYSE MKT&rsquo;s approval of the Additional Listing Application.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">4.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Reservation
of Common Stock</U>. No later than the effective date of the Amendment, the Company will reserve and the Company shall continue
to reserve and keep available at all times, free of preemptive rights, a sufficient number of shares of Common Stock for the purpose
of enabling the Company to issue the Warrant Shares pursuant to any exercise of the Warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">4.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Board
Recommendation</U>. The Board of Directors of the Company shall not withdraw or modify, or propose to or resolve to withdraw or
modify the Board Recommendation, unless a failure to do so would be materially inconsistent with the Board&rsquo;s fiduciary duties
as determined after consultation with outside legal counsel.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; color: #010000"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="color: #010000"><B>Article 5</B></FONT><B><BR>
<BR>
Conditions Precedent</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">5.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Conditions
Precedent of the Company</U>. The obligation of the Company to consummate the Transactions shall be subject to the satisfaction
prior to or at the Closing of the following conditions, which may only be waived in writing, in whole or in part, by the Company:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>the
Transactions shall have received (i) all requisite approvals of the stockholders of the Company required pursuant to Nevada law,
the Company&rsquo;s Articles of Incorporation and Bylaws and the rules and regulations of the NYSE MKT (the &ldquo;<U>Required
Shareholder Approval</U>&rdquo;) and (ii) approval of a majority of the shares of Common Stock of the Company present in person
or represented by proxy at a meeting of the stockholders of the Company called for such purpose that are not owned, beneficially
or of record, by Elemetal, NTR, or any of their Affiliates (the &ldquo;<U>Majority of the Minority Requirement</U>&rdquo;);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>the
Amendment shall have received all requisite approvals of the stockholders of the Company;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>the
representations and warranties of the Purchasers set forth in this Agreement shall have been true and correct in all material respects
as of the date of this Agreement and shall be true and correct in all material respects as of the date of the Closing as if made
on and as of such date;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>the
Purchasers shall have performed in all material respects all obligations and complied in all material respects with all covenants
required by this Agreement to be performed or complied with by them at or prior to the Closing (other than a failure to so perform
or comply which is attributable to actions or inactions by or on behalf of the Company); and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>the
Purchasers shall have made the deliveries required by <U>Section 1.2(a)</U> hereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">5.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Conditions
Precedent of the Purchasers</U>. The respective obligations of the Purchasers to consummate the Transactions shall be subject to
the satisfaction prior to or at the Closing of the following conditions, which may only be waived in writing, in whole or in part,
by the Purchasers:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>the
Transactions shall have received (i) the Required Shareholder Approval and (ii) the Majority of the Minority Requirement;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>the
Amendment shall have received all requisite approvals of the stockholders of the Company;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>the
representations and warranties of the Company set forth in this Agreement shall have been true and correct in all material respects
as of the date of this Agreement and shall be true and correct in all material respects as of the date of the Closing as if made
on and as of such date;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>the
Company shall have performed in all material respects all obligations and complied in all material respects with all covenants
required by this Agreement to be performed or complied with by it at or prior to the Closing (other than a failure to so perform
or comply which is attributable to actions or inactions by or on behalf of the Purchasers);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>the
Company shall have made the deliveries required by <U>Section 1.2(a)</U> hereto;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>the Company shall have delivered to the Purchasers a certificate of good standing in respect of the
Company issued by the Secretary of State of the State of Nevada dated as of a date within five calendar days of the Closing;
and</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>the
Company shall have executed and delivered the Registration Rights Agreement in the form attached as <U>Exhibit B</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">5.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Conditions
Precedent of the All of the Parties</U>. The respective obligations of each party to consummate the Transactions shall be subject
to the satisfaction prior to or at the Closing of the following conditions, which may only be waived in writing, in whole or in
part, by mutual agreement of the parties:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>the
Additional Listing Application shall have been approved by the NYSE MKT; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>no
order or decree of any court or governmental body having competent jurisdiction over the Transactions contemplated by this Agreement
shall prohibit the Transactions.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="color: #010000"><B>Article 6</B></FONT><B><BR>
<BR>
Adjustments</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">6.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Reclassification</U>.
If the Company, at any time prior to the Closing, by reclassification of securities or otherwise, shall change any of the securities
of the same class (the &ldquo;<U>Comparable Securities</U>&rdquo;) as the Securities or the Warrant Shares not yet sold, issued
and delivered to, and purchased by, the Purchaser under this Agreement (the &ldquo;<U>Pending Securities</U>&rdquo;) into the same
or a different number of securities of any other class or classes, then the Pending Securities shall automatically be adjusted
to be comprised of such number and kind of securities as would have been issuable as a result of such change with respect to the
Comparable Securities immediately prior to such reclassification or other change, and the purchase price for such Pending Securities
shall be proportionately adjusted, if applicable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">6.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Subdivision
or Combination of Shares</U>. If the Company, at any time prior to the Closing, shall split or subdivide the Comparable Securities
into a greater number of securities of the same class, then the number of Pending Securities shall be proportionately increased
and the purchase price to be paid for such Pending Securities shall be proportionately decreased. If the Company, at any time prior
to the Closing, shall reverse split or combine the Comparable Securities into a lesser number of securities of the same class,
then the number of Pending Securities shall be proportionately decreased and the purchase price to be paid for such Pending Securities
shall be proportionately increased.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">6.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Certain
Other Matters</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>All
calculations under this <U>Article 6</U> shall be made to the nearest cent or whole Elemetal Share or NTR Share, as the case may
be.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>No
adjustment in the Aggregate Consideration shall be required unless such adjustment would require an increase or decrease of at
least U.S.$0.01 per Elemetal Share or NTR Share, as applicable; <I>provided, however</I>, that any adjustments which by reason
of this <U>Section 6.3(b)</U> are not required to be made shall be carried forward and taken into account in any subsequent adjustment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>


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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>If,
as a result of an adjustment made pursuant to this <U>Article 6</U>, the Company shall be obligated to sell and issue, and the
Purchasers shall be required to purchase, shares of more than one class or series of capital stock of the Company, then the Board
of Directors of the Company (whose determination shall be final and conclusive) shall determine, in good faith, the allocation
of the adjusted Aggregate Consideration between or among the shares of such multiple classes or series of capital stock of the
Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>If
any event shall occur as to which the other provisions of this <U>Article 6</U> are not strictly applicable but as to which the
failure to make any adjustment would not fairly preserve the rights and obligations of the Company and the Purchasers under this
Agreement in accordance with the essential intent and principles of the adjustments set forth in this <U>Article 6</U>, then, in
each such case, the Board of Directors of the Company (whose determination shall be final and conclusive) shall determine, in good
faith, the adjustment, if any, on a basis consistent with the essential intent and principles established herein, necessary to
fairly preserve the parties&rsquo; respective rights and obligations hereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">6.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Certificate
as to Adjustments</U>. Upon the occurrence of each adjustment or readjustment pursuant to this <U>Article 6</U>, the Company shall
promptly compute such adjustment or readjustment in accordance with the terms hereof and furnish to the Purchasers a certificate
setting forth, in reasonable detail, the event requiring such adjustment or readjustment, the amount of such adjustment or readjustment,
the method by which such adjustment or readjustment was calculated, the adjusted or readjusted Aggregate Consideration and adjusted
or readjusted number of Pending Securities (including, if requested by Elemetal, a new Warrant reflecting such adjustments).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; color: #010000"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="color: #010000"><B>Article 7</B></FONT><B><BR>
<BR>
Termination</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">7.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Termination
of this Agreement</U>. This Agreement may be terminated and the Transactions may be abandoned at any time prior to the Closing
as follows: (a) by mutual written consent of the Company and the Purchasers; (b) by either the Company or the Purchasers: (i) after
the Company Stockholder Meeting, if, at the Company Stockholder Meeting, the Transactions do not receive the Required Shareholder
Approval or the Majority of the Minority Approval or the Amendment does not receive all requisite approvals of the Company&rsquo;s
stockholders or (ii) on or after December 31, 2016, if the Transactions have not been consummated; or (c) by the Purchasers if
(i) the Company fails to include the Board Recommendation in the Proxy Statements or withdraws the Board Recommendation or modifies
the Board Recommendation in a manner adverse thereto or (ii) the Company fails to call the Company Stockholder Meeting or fails
to deliver the Proxy Statements to its stockholders in accordance with this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">7.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Effect
of Termination</U>. (a) Either party electing to terminate this Agreement pursuant to <U>Section 7.1(b)</U> above may effect such
termination only by promptly delivering written notice thereof to the other party and (b) the Purchasers may terminate this Agreement
pursuant to <U>Section 7.1(c)</U> above by promptly delivering written notice thereof to the Company. Following any termination
duly effected pursuant to <U>Section 7.1</U>, no party shall have any further obligations under this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; color: #010000"><B>&nbsp;</B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; color: #010000"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="color: #010000"><B>Article 8</B></FONT><B><BR>
<BR>
Miscellaneous</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">8.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Legends</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Each
stock certificate representing the Elemetal Shares and the NTR Shares shall have conspicuously endorsed thereon the following legend:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">THE SECURITIES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY
NOT BE SOLD OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE
SECURITIES LAWS OR PURSUANT TO AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND SUCH LAWS.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The
Warrant shall be transferrable without the prior written consent of the Company, but shall have conspicuously endorsed thereon
the legend set forth on the first page of the Form of Warrant attached hereto as <U>Exhibit A</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>To
the extent the Warrant is exercised, any stock certificate representing the Warrant Shares acquired upon such exercise shall have
conspicuously endorsed thereon the legends set forth in <U>Section 5</U> of the Form of Warrant attached hereto as <U>Exhibit A</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">8.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Brokerage</U>.
Each party will indemnify and hold harmless the other party against and in respect of any claim for brokerage or other commissions
relative to this Agreement or the Transactions, based in any way on agreements, arrangements or understandings made or claimed
to have been made by such party with any third party.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">8.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Survival</U>.
Except for the representations and warranties of (a) the Company contained in <U>Sections 2.1</U>, <U>2.2</U> and<U> 2.7(a)</U>,
and (b) the Purchasers contained in <U>Sections 3.4 and 3.5</U>, which representations and warranties shall survive the Closing,
the respective representations of the Company and Purchasers contained in this Agreement shall not survive the Closing, and thereafter
none of the Company, any Purchaser or any officer, director, employee, or Affiliate of the Company, or any Purchaser shall have
any liability whatsoever (whether pursuant to this Agreement or otherwise) with respect to such representation or warranty. This
<U>Section 8.3</U> shall have no effect upon any other obligations of the parties hereto under this Agreement, whether to be performed
before, at or after the Closing, which shall survive until fulfilled or the expiration of the time thereof in accordance with their
terms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">8.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Parties
in Interest</U>. All representations, warranties, covenants and agreements contained in this Agreement by or on behalf of either
party shall bind and inure to the benefit of the respective successors and permitted assigns of such party whether so expressed
or not; <I>provided, however</I>, no party may assign, in whole or in part, this Agreement or any right or obligation hereunder,
except as otherwise specified herein, without the prior written consent of the other party.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">8.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Notices</U>.
All notices and other communications hereunder shall be in writing and shall be deemed to have been duly received: (a) on the date
given if delivered personally or by facsimile or electronic transmission; (b) one day after being sent by internationally recognized
overnight delivery service; or (c) five days after having been mailed by registered or certified mail (postage prepaid, return
receipt requested); in the case of each of the foregoing, to the parties at the following addresses (or at such other address for
a party as shall be specified by like notice):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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: 50%; text-align: justify">If to the Company:</TD>
    <TD STYLE="width: 50%; text-align: justify">DGSE Companies, Inc.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">15850 Dallas Parkway</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Suite 140</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Dallas, Texas&nbsp;&nbsp;75248</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Facsimile: (972) 674-2596</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Email:mpeakes@dgse.com</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Attention: President/ CEO</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">If to Elemetal:</TD>
    <TD STYLE="text-align: justify">Elemetal, LLC</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">15850 Dallas Parkway</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Dallas, Texas&nbsp;&nbsp;75248</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Facsimile: (469) 533-1622</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Email: bleroy@elemetal.com</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Attention: Bill LeRoy, President/CEO</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">If to NTR:</TD>
    <TD STYLE="text-align: justify">NTR Metals, LLC</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">10720 Composite Drive</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Dallas, Texas&nbsp;&nbsp;75220</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Facsimile: (469) 522-1100</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Email: tgum@elemetal.com</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Attention: Carl (Trey) Gum, General Counsel</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">8.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Governing
Law</U>. This Agreement shall be governed by and construed in accordance with the laws of the State of Texas for all purposes and
in all respects, without regard to the conflict of law provisions of such state.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">8.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Entire
Agreement</U>. This Agreement constitutes the sole and entire agreement of the parties with respect to the subject matter hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">8.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">8.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Amendments
and Waivers</U>. This Agreement may be amended or modified in whole or in part at any time only by a writing signed by the parties
hereto. Any term, condition or provision of this Agreement may be waived in writing at any time by the party which is entitled
to the benefits thereof. Any waiver by any party hereto of any of its rights or remedies under this Agreement shall not constitute
a waiver of any of its other rights or remedies hereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">8.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Severability</U>.
If any term or provision of this Agreement is finally deemed by a court of competent jurisdiction to be invalid, illegal or incapable
of being enforced, all other terms and provisions of this Agreement shall nevertheless remain in full force and effect so long
as the economic or legal substance of the Transactions is not affected in any manner materially adverse to any party. Upon such
determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate
in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually
acceptable manner in order that the Transactions be consummated as originally contemplated to the fullest extent possible.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">8.11&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Injunctive
Relief</U>. It is possible that remedies at law may be inadequate and, therefore, the parties shall be entitled to equitable relief,
including, without limitation, injunctive relief, specific performance or other equitable remedies, in addition to all other remedies
provided hereunder or available to the parties at law or in equity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000">8.12&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Titles
and Subtitles</U>. The titles and subtitles used in this Agreement are for convenience only and are not to be considered in construing
or interpreting any term or provision of this Agreement.</P>

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

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

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


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; 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="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><B>THE COMPANY:</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><B>DGSE Companies, Inc.</B>,</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">a Nevada corporation</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 5%; text-align: justify">By:</TD>
    <TD STYLE="width: 45%; border-bottom: Black 1pt solid; text-align: left">/s/ Matthew Peakes</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Name:</TD>
    <TD STYLE="text-align: justify"> Matthew Peakes</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Title:</TD>
    <TD STYLE="text-align: justify"> Chief Executive Officer and President</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps">Stock
Purchase Agreement</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 3in; text-align: justify">&nbsp;</P>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><B>&nbsp;&nbsp;</B></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="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>THE PURCHASERS</B>:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Elemetal, LLC</B>,</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a Delaware limited liability company</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 5%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By: &nbsp;</FONT></TD>
    <TD STYLE="width: 45%; border-bottom: black 1pt solid; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ William E. LeRoy</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Name:</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"> William E. LeRoy</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Title:</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">President/CEO</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NTR Metals, LLC</B>,</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a Texas limited liability company</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By: &nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ John Loftus</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Name:</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"> John Loftus</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Title: &nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1pt; text-align: justify">Member</TD></TR>
</TABLE>


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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps">Stock
Purchase Agreement</FONT></P>

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

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<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>v442552_ex10-2.htm
<DESCRIPTION>EXHIBIT 10.2
<TEXT>
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<P STYLE="margin: 0"></P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: right">Exhibit 10.2</P>

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

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">WARRANT TO PURCHASE<BR>
SHARES OF COMMON STOCK<BR>
OF<BR>
DGSE COMPANIES, INC.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">THIS WARRANT AND THE SHARES
(AS HEREINAFTER DEFINED) HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE
AND MAY NOT BE SOLD OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE
STATE SECURITIES LAWS OR PURSUANT TO AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND SUCH LAWS.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">THIS WARRANT (this &ldquo;<U>Warrant</U>&rdquo;)
CERTIFIES THAT, upon the terms and subject to the conditions set forth herein, Elemetal, LLC, a limited liability company organized
and existing under the laws of the State of Delaware (the &ldquo;<U>Holder</U>&rdquo;), for good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, has been granted the right to purchase from DGSE Companies, Inc., a Nevada
corporation (the &ldquo;<U>Company</U>&rdquo;), during the Term (as hereinafter defined), 1,000,000 shares (the &ldquo;<U>Shares</U>&rdquo;)
of the Company&rsquo;s common stock, par value $0.01 per share (&ldquo;<U>Common Stock</U>&rdquo;), at an exercise price of U.S.
$0.65 per Share (the &ldquo;<U>Exercise Price</U>&rdquo;) (subject to adjustment hereunder). Until the earlier of the Expiration
Date (as hereinafter defined) and such time as this Warrant is exercised in full, the Exercise Price and the number of Shares (or
consideration) issuable upon exercise of this Warrant are subject to adjustment as hereinafter provided. Capitalized terms used
and not otherwise defined herein shall have the meanings set forth in that certain Stock Purchase Agreement, dated June 20, 2016
(the &ldquo;<U>Stock Purchase Agreement</U>&rdquo;), among the Company, the Holder and NTR Metals, LLC, a limited liability company
organized and existing under the laws of the State of Texas.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #010000"><B>1.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><B><U>Term</U></B>.
Upon the terms and subject to the conditions set forth herein, this Warrant shall be exercisable, in whole or in part, at any
time, or from time to time, during the period (such period, the <FONT STYLE="font-family: Times New Roman, Times, Serif">&ldquo;</FONT><U>Term</U><FONT STYLE="font-family: Times New Roman, Times, Serif">&rdquo;</FONT>)
commencing at 5:00 p.m., Eastern time, on ______________, 2016 (the <FONT STYLE="font-family: Times New Roman, Times, Serif">&ldquo;</FONT><U>Effective
Date</U><FONT STYLE="font-family: Times New Roman, Times, Serif">&rdquo;</FONT>) and ending at 5:00 p.m., Eastern time, on _____________,
2018 (the <FONT STYLE="font-family: Times New Roman, Times, Serif">&ldquo;</FONT><U>Expiration Date</U><FONT STYLE="font-family: Times New Roman, Times, Serif">&rdquo;</FONT>).
Any portion of this Warrant remaining unexercised at the Expiration Date shall thereafter be void.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #010000"><B>2.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><B><U>Exercise</U></B>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0.5in; color: #010000"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000"><B>(a)<FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></FONT><B><U>Manner
of Exercise</U></B>. The purchase rights represented by this Warrant are exercisable by the Holder in whole or in part, at any
time, or from time to time, during the Term: (i) by the surrender of this Warrant and the Notice of Exercise (in the form attached
hereto as <U>Exhibit A</U>), duly completed and executed on behalf of the Holder, at the principal executive office of the Company
located at 15850 Dallas Parkway, Suite 140, Dallas, Texas 75248, or such other office as the Company shall notify the Holder of
in writing (the <FONT STYLE="font-family: Times New Roman, Times, Serif">&ldquo;</FONT><U>Principal Office</U><FONT STYLE="font-family: Times New Roman, Times, Serif">&rdquo;</FONT>);
and (ii) upon payment, by wire transfer of immediately available funds to an account designated by the Company of the aggregate
Exercise Price for the Shares to be purchased, or other payment method agreeable to the Company (except that any payment must be
made in accordance with applicable securities laws).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0.5in; color: #010000"><B>&nbsp;</B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; color: #010000"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000"><B>(b)<FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></FONT><B><U>Time
of Exercise</U></B>. This Warrant shall be deemed to have been exercised immediately prior to the close of business on the date
of its surrender for exercise as provided above (the <FONT STYLE="font-family: Times New Roman, Times, Serif">&ldquo;</FONT><U>Exercise
Date</U><FONT STYLE="font-family: Times New Roman, Times, Serif">&rdquo;</FONT>), and the Holder (or other individual or entity
(<FONT STYLE="font-family: Times New Roman, Times, Serif">&ldquo;</FONT><U>Person</U><FONT STYLE="font-family: Times New Roman, Times, Serif">&rdquo;</FONT>)
entitled to receive the Shares issuable upon such exercise in accordance with the terms hereof) shall be treated for all purposes
as the holder of record of such Shares as of the close of business on such date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0.5in; color: #010000"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000"><B>(c)<FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></FONT><B><U>Delivery
of Certificate and Balance Warrant</U></B>. As promptly as practicable on or after the Exercise Date and in any event within three
(3) days thereafter, the Company, at its expense, will issue and deliver to the Holder (or other Person entitled to receive the
Shares issuable upon exercise of this Warrant in accordance with the terms hereof) a certificate or certificates for the Shares
issuable upon such exercise or, if such Shares are not certificated, other appropriate written evidence of the issuance of the
Shares. In the event that this Warrant is exercised in part, the Company at its expense shall execute and deliver to the Holder
(or its successor or permitted assignee) a new warrant of like tenor exercisable for the number of Shares for which this Warrant
may then be exercised after giving effect to all previous exercises and adjustments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in; color: #010000"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"><FONT STYLE="color: #010000"><B>(d)<FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></FONT><B><U>Rescission
Rights</U>. </B>If the Company fails to issue or cause to have issued the Shares issuable upon such exercise of the Warrant within
three (3) days of the Exercise Date, then the Holder will have the right to rescind such exercise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in; color: #010000"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"><FONT STYLE="color: #010000"><B>(e)<FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></FONT><B><U>Charges,
Taxes and Expenses</U></B>. Issuance of the Shares shall be made without charge to the Holder for any issue or transfer tax or
other incidental expense in respect of the issuance of such Shares, all of which taxes and expenses shall be paid by the Company,
and such Shares shall be issued in the name of the Holder or in such name or names as may be directed by the Holder in the Notice
of Exercise. The Company shall pay all fees required for same-day processing of any Notice of Exercise and all fees to the Depository
Trust Company (or another established clearing corporation performing similar functions) required for same-day electronic delivery
of the Shares.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0.5in; color: #010000"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000"><B>(f)<FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></FONT><B><U>No
Fractional Shares</U></B>. This Warrant my only be exercised for whole Shares, and in no event shall any fractional Share be issued
upon any exercise of this Warrant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0.5in; color: #010000"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000"><B>(g)<FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></FONT><B><U>Limitation
on Exercise</U></B>. Notwithstanding anything to the contrary contained in this Warrant, in no event shall the Holder be entitled
to exercise this Warrant, or to receive Shares issuable upon exercise of this Warrant, for an amount of Shares which, as of the
date of such exercise, is in excess of the number of shares of Common Stock that the Company has sold and issued, and the Holder
has purchased, under the Stock Purchase Agreement, pursuant to which, among other things, this Warrant was issued.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #010000"><B>3.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><B><U>Adjustments</U></B>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0.5in; color: #010000"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000"><B>(a)<FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></FONT><B><U>Reclassification</U></B>.
If the Company, at any time while this Warrant, or any portion hereof, is outstanding and unexpired, by reclassification of securities
or otherwise, shall change any of the securities as to which purchase rights under this Warrant exist into the same or a different
number of securities of any other class or classes, then this Warrant shall thereafter represent the right to acquire such number
and kind of securities as would have been issuable as a result of such change with respect to the securities that were subject
to the purchase rights under this Warrant immediately prior to such reclassification or other change, and the Exercise Price shall
be proportionately adjusted, as appropriate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0.5in; color: #010000"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000"><B>(b)<FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></FONT><B><U>Subdivision
or Combination of Shares</U></B>. If the Company, at any time while this Warrant, or any portion hereof, is outstanding and unexpired,
shall split or subdivide the securities for which this Warrant is exercisable into a greater number of securities of the same class,
then the amount of securities for which this Warrant is exercisable shall be proportionately increased and the Exercise Price shall
be proportionately decreased. If the Company, at any time while this Warrant, or any portion hereof, is outstanding and unexpired,
shall reverse split or combine the securities for which this Warrant is exercisable into a lesser number of securities of the same
class, then the amount of securities for which this Warrant is exercisable shall be proportionately decreased and the Exercise
Price shall be proportionately increased.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0.5in; color: #010000"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000"><B>(c)<FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></FONT><B><U>Adjustments
for Non-Cash Dividends</U></B>. If, at any time while this Warrant, or any portion thereof, is outstanding and unexpired, the holders
of the securities as to which purchase rights under this Warrant exist at the time shall have received, or, on or after the record
date fixed for the determination of eligible stockholders, shall have become entitled to receive, without payment therefor, other
or additional securities or property (other than cash) of the Company by way of dividend or distribution (collectively, a <FONT STYLE="font-family: Times New Roman, Times, Serif">&ldquo;</FONT><U>Dividend</U><FONT STYLE="font-family: Times New Roman, Times, Serif">&rdquo;</FONT>),
then, in each case, this Warrant shall represent the right to acquire, in addition to the number of Shares receivable upon exercise
of this Warrant, and without payment of any additional consideration therefor, the amount of such other or additional securities
or property (other than cash) of the Company that the Holder (or its successor or permitted assignee) would hold on the date of
exercise of this Warrant had it been the holder of record of the security receivable upon exercise of this Warrant on the record
date fixed with respect to the Dividend and had thereafter, during the period from the date thereof through and including the date
of such exercise, retained such securities and all other additional securities which it would have received during such period
as a result of its ownership thereof, giving effect to all adjustments called for during such period by the provisions of this
Warrant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #010000"><B>4.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><B><U>Fundamental
Transaction</U></B>. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in one or more
related transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company, directly
or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially
all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange
offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell,
tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of
the outstanding Common Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification,
reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is
effectively converted into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in
one or more related transactions consummates a stock or share purchase agreement or other business combination (including, without
limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person or group of Persons whereby
such other Person or group acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common
Stock held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making
or party to, such stock or share purchase agreement or other business combination) (each a <FONT STYLE="font-family: Times New Roman, Times, Serif">&ldquo;</FONT><U>Fundamental
Transaction</U><FONT STYLE="font-family: Times New Roman, Times, Serif">&rdquo;</FONT>), then, upon any subsequent exercise of
this Warrant, the Holder shall have the right to receive, for each Share that would have been issuable upon such exercise immediately
prior to the occurrence of such Fundamental Transaction, at the option of the Holder, the number of shares of Common Stock of
the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration
(the <FONT STYLE="font-family: Times New Roman, Times, Serif">&ldquo;</FONT><U>Alternate Consideration</U><FONT STYLE="font-family: Times New Roman, Times, Serif">&rdquo;</FONT>)
receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Warrant
is exercisable immediately prior to such Fundamental Transaction. For purposes of any such exercise, the determination of the
Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration
issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise
Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the
Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property 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 Transaction. Upon the occurrence of any such Fundamental Transaction in
which the Company is the survivor (such surviving entity, the <FONT STYLE="font-family: Times New Roman, Times, Serif">&ldquo;</FONT><U>Successor
Entity</U><FONT STYLE="font-family: Times New Roman, Times, Serif">&rdquo;</FONT>), the Successor Entity shall succeed to, and
be substituted for, the Company (so that from and after the date of such Fundamental Transaction, the provisions of this Warrant
and the other documents entered into in connection with the Transactions referring to the <FONT STYLE="font-family: Times New Roman, Times, Serif">&ldquo;</FONT>Company<FONT STYLE="font-family: Times New Roman, Times, Serif">&rdquo;
</FONT>shall refer instead to the Successor Entity), and the Successor Entity may exercise every right and power of the Company
and shall assume all of the obligations of the Company under this Warrant and the other documents entered into in connection with
the Transactions with the same effect as if such Successor Entity had been named as the Company herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #010000"><B>5.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><B><U>Certain
Other Matters</U></B>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0.5in; color: #010000"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000"><B>(a)<FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></FONT>All
calculations under <U>Section 3</U> and <U>Section 4</U> shall be made to the nearest cent or whole Share, as the case may be.
For purposes of <U>Section 3</U> and <U>Section 4</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: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0.5in; color: #010000"><B>&nbsp;</B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; color: #010000"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000"><B>(b)<FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></FONT>No
adjustment in the Exercise Price shall be required unless such adjustment would require an increase or decrease of at least U.S.
$0.01 per Share; provided, however, that any adjustments which by reason of this <U>Section 5(b)</U> are not required to be made
shall be carried forward and taken into account in any subsequent adjustment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0.5in; color: #010000"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000"><B>(c)<FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></FONT>If,
as a result of an adjustment made pursuant to <U>Section 3</U> or <U>Section 4</U>, the Holder (or its successor or permitted assignee)
shall become entitled to receive shares of more than one class or series of capital stock of the Company, then the Board (whose
determination shall be final and conclusive) shall determine, in good faith, the allocation of the adjusted Exercise Price between
or among the shares of such multiple classes or series of capital stock of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0.5in; color: #010000"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #010000"><B>(d)<FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></FONT>If
any event shall occur as to which the other provisions of <U>Section 3</U> or <U>Section 4</U> are not strictly applicable but
as to which the failure to make any adjustment would not fairly preserve the purchase rights represented by this Warrant in accordance
with the essential intent and principles of the adjustments set forth in <U>Section 3</U> and <U>Section 4</U>, then, in each such
case, the Board (whose determination shall be final and conclusive) shall determine, in good faith, the adjustment, if any, on
a basis consistent with the essential intent and principles established herein, necessary to fairly preserve the purchase rights
represented by this Warrant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #010000"><B>6.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><B><U>Certificate
as to Adjustments</U></B>. Upon the occurrence of each adjustment or readjustment pursuant to <U>Section 3</U> or <U>Section
4</U>, the Company shall promptly compute such adjustment or readjustment in accordance with the terms hereof and furnish to
the Holder (or its successor or permitted assignee) a certificate setting forth, in reasonable detail, the event requiring
such adjustment or readjustment, the amount of such adjustment or readjustment, the method by which such adjustment or
readjustment was calculated, the adjusted or readjusted Exercise Price and adjusted or readjusted number of Shares or amount
of other securities or property that would be received upon the exercise of this Warrant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #010000"><B>7.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><B><U>Legend</U></B>.
Each stock certificate representing Shares issued upon exercise of this Warrant shall have conspicuously endorsed thereon the
following legend:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">THE SECURITIES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY
NOT BE SOLD OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE
SECURITIES LAWS OR PURSUANT TO AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND SUCH LAWS.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #010000"><B>8.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><B><U>Shares
to be Fully Paid</U></B>. When issued and delivered in accordance with this Warrant to the Holder (or its successor or permitted
assignee) upon payment to the Company of the applicable Exercise Price, the Shares issued by the Company pursuant to this Warrant
will be fully paid and non-assessable with no personal liability attaching to ownership thereof and will be free and clear of
all liens, charges and encumbrances of any nature whatsoever except for restrictions on transfer under the Stock Purchase Agreement
and under applicable federal and state securities laws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #010000"><B>9.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><B><U>Company
to Reserve Shares</U></B>. At all times while this Warrant, or any portion hereof, is outstanding and unexpired, the Company shall
reserve and keep available, free from preemptive rights, out of its authorized but unissued capital stock, for the purpose of
effecting the exercise of this Warrant, the full number of Shares then deliverable upon the exercise of this Warrant. The issuance
of this Warrant shall constitute full authority to those officers of the Company who are charged with the duty of executing stock
certificates to execute and issue the necessary certificates for Shares upon exercise of this Warrant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #010000"><B>10.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><B><U>Exchange
of Warrant</U></B>. If this Warrant shall be mutilated, lost, stolen or destroyed, then the Company shall execute and deliver
to the Holder (or its successor or permitted assignee) a new warrant of like tenor and denomination and deliver the same (i) in
exchange and substitution for and upon surrender and cancellation of any mutilated Warrant or (ii) in lieu of any Warrant lost,
stolen or destroyed, upon receipt of evidence reasonably satisfactory to the Company of the loss, theft or destruction of such
Warrant (including, without limitation, a reasonably detailed affidavit with respect to the circumstances of any loss, theft or
destruction) and upon receipt of indemnity reasonably satisfactory to the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #010000"><B>11.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><B>&nbsp;<U>No
Rights as Stockholder</U></B>. Except as otherwise provided herein, this Warrant, to the extent not exercised, will not entitle
the Holder to any of the rights, including, without limitation, voting rights, information rights and rights to receive dividends
or distributions, of a stockholder of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #010000"><B>12.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><B><U>Amendment</U></B>.
This Warrant may not be modified or amended, except with the prior written consent of the Holder (or its successor or permitted
assignee) and the Company. Any instrument given by or on behalf of the Holder (or its successor or permitted assignee) in connection
with any consent to any modification or amendment of this Warrant will be conclusive and binding on any and all subsequent holders
of this Warrant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #010000"><B>13.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><B><U>Transfer</U></B>.
Neither this Warrant nor the Shares have been registered under the Securities Act of 1933, as amended, or any state securities
laws, and such securities may not be offered for sale, sold, assigned, pledged, or otherwise disposed of, unless they are registered
under the Securities Act of 1933, as amended, and such state laws or the transaction is exempt from the registration requirements
thereof. Subject to the foregoing, upon surrender of this Warrant as a result of a transfer hereof, the Company, at the expense
of the Company, will issue and deliver to, or to the order of, the transferee a new Warrant in the name of such transferee, exercisable
for the number of Shares for which this Warrant may then be exercised after giving effect to all previous exercises and adjustments.
Subject to the foregoing, nothing herein shall be construed to limit the number of transfers of the Warrant (including transfers
of fractional interests herein).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #010000"><B>14.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><B><U>Successors
and Assigns</U></B>. This Warrant shall be binding upon the Company and its successors and assigns and shall inure to the benefit
of the Holder and its successors and permitted assigns.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>


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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #010000"><B>15.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><B><U>Titles
and Subtitles</U></B>. The titles and subtitles used in this Warrant are for convenience only and are not to be considered in
construing or interpreting any term or provision of this Warrant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: #010000"><B>16.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><B><U>Governing
Law</U></B>. This Warrant shall be governed by and construed in accordance with the laws of the State of Texas for all purposes
and in all respects, without regard to the conflict of law provisions of such state.</P>

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

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

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in">IN WITNESS WHEREOF, the Company
has caused this Warrant to be executed by its duly authorized officer as of the Effective Date set forth above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; 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="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><B>DGSE Companies, Inc.</B>,</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">a Delaware corporation</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: justify">By:</TD>
    <TD STYLE="width: 46%; text-align: justify; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">Name: Matthew Peakes</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">Title: Chief Executive Officer and President</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-weight: normal; font-style: normal; font-variant: small-caps">Warrant
Signature Page</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font-weight: normal; font-style: normal; font-variant: small-caps; text-transform: none">&nbsp;</FONT></P>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Dated: ________, 20__</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The undersigned hereby
elects to purchase ____ shares (the &ldquo;<U>Shares</U>&rdquo;) of common stock of DGSE Companies, Inc. (the &ldquo;<U>Company</U>&rdquo;)
pursuant to the terms of the warrant issued to the undersigned, effective as of ______________, 2016, a copy of which is attached
hereto (the &ldquo;<U>Warrant</U>&rdquo;), and tenders herewith payment to the Company of U.S. $0.65 per Share, for an aggregate
purchase price of U.S. $__________, representing payment in full for the Shares in accordance with the terms of the Warrant. Such
aggregate purchase price is being paid by wire transfer of immediately available funds to an account designated by the Company,
or other payment method agreeable to the Company. Until the earlier of the Expiration Date (as defined in the Warrant) and such
time as the Warrant is exercised in full, the Exercise Price (as defined in the Warrant) and the number of Shares (or consideration)
issuable upon exercise of the Warrant are subject to adjustment as provided in the Warrant.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Please issue certificate(s)
representing the Shares, and a new warrant for the unexercised portion of the Warrant [strike if not applicable], in the name of
the undersigned, and deliver such certificate(s) and new warrant [strike if not applicable] to the undersigned at the following
address:</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">15850 Dallas Parkway</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Dallas, Texas 75248</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><B>Elemetal, LLC</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: justify">By:</TD>
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<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>4
<FILENAME>v442552_ex10-3.htm
<DESCRIPTION>EXHIBIT 10.3
<TEXT>
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<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

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

<P STYLE="margin: 0; text-align: right"><B>Exhibit 10.3</B></P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">This<B> REGISTRATION RIGHTS
AGREEMENT</B> (this &ldquo;<U>Agreement</U>&rdquo;), is made and entered into as of __________, 2016, by and among DGSE Companies,
Inc., a Nevada corporation (the &ldquo;<U>Company</U>&rdquo;), Elemetal, LLC, a Delaware limited liability company (&ldquo;<U>Elemetal</U>&rdquo;),
NTR Metals, LLC, a Texas limited liability company (&ldquo;<U>NTR</U>&rdquo;). Elemetal and NTR are collectively referred to herein
as the &ldquo;Stockholders.&rdquo;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">This Agreement is
made pursuant to the Stock Purchase Agreement between the Company and the Stockholders dated as of June 20, 2016 (the
&ldquo;<U>Purchase Agreement</U>&rdquo;). In order to induce the Stockholders to enter into the Purchase Agreement, the
Company has agreed to provide the registration and other rights set forth in this Agreement.</P>

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

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

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

<P STYLE="color: #010000; font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-transform: uppercase; text-align: center; text-indent: 0in">Article
I</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: #010000">Section
1.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Definitions</U>. Capitalized terms used herein without definition
shall have the meanings given to them in the Purchase Agreement. The terms set forth below are used herein as so defined:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Beneficial Ownership</I>&rdquo;
shall have the meaning specified in Rule 13d-3 under the Exchange Act.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Commission</I>&rdquo;
has the meaning specified therefor in Section 1.02 of this Agreement.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Common Stock</I>&rdquo;
means the common stock, par value $0.01 per share, of the Company.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Holder</I>&rdquo;
means any Stockholder who owns Registrable Securities.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Initial Requesting
Holder</I>&rdquo; has the meaning specified therefor in Section 2.01 of this Agreement.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Inspectors</I>&rdquo;
has the meaning specified therefor in Section 4.01 this Agreement.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Losses</I>&rdquo;
has the meaning specified therefor in Section 4.06 of this Agreement.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Participating
Holder</I>&rdquo; has the meaning specified therefor in Section 3.01 of this Agreement.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Person</I>&rdquo;
means any individual, corporation, limited liability company, partnership, joint venture, association, joint-stock company, business
trust, trust or unincorporated entity.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Records</I>&rdquo;
has the meaning specified therefor in Section 4.01 of this Agreement.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Registrable Securities</I>&rdquo;
means the Common Stock acquired by the Stockholders pursuant to the Purchase Agreement and all other shares of Common Stock Beneficially
Owned by the Stockholders on the date hereof until such time as such securities cease to be Registrable Securities pursuant to
Section 1.02 hereof.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Registration
Statement</I>&rdquo; means a registration statement on a Form S-3 or Form S-1 (or successor form to either).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Requesting Holders</I>&rdquo;
has the meaning specified therefor in Section 2.01 of this Agreement.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Required Period</I>&rdquo;
has the meaning specified therefor in Section 2.07 of this Agreement.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Securities Act</I>&rdquo;
has the meaning specified therefor in Section 1.02 of this Agreement.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Selling Holder</I>&rdquo;
means a Holder who is selling Registrable Securities pursuant to a Registration Statement.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>Underwriter&rsquo;s
Maximum Number</I>&rdquo; has the meaning specified therefore in Section 2.09 of this Agreement.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&ldquo;<I>WKSI</I>&rdquo;
means a &ldquo;well-known seasoned issuer&rdquo; as defined in Rule 405 under the Securities Act.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: #010000">Section
1.02&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Registrable Securities</U>. Any Registrable Security will cease
to be a Registrable Security when (i) a Registration Statement covering such Registrable Security has been declared effective by
the Securities and Exchange Commission (the &ldquo;<U>Commission</U>&rdquo;) and such Registrable Security has been sold or disposed
of pursuant to such effective Registration Statement; (ii) such Registrable Security is disposed of pursuant to Rule 144 (or any
similar provision then in force) under the Securities Act of 1933, as amended (the &ldquo;<U>Securities Act</U>&rdquo;); (iii)
such Registrable Security is held by the Company or one of its subsidiaries; or (iv) such Registrable Securities are sold by a
person in a transaction in which the rights under the provisions of this Agreement are not assigned.</P>

<P STYLE="color: #010000; font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-transform: uppercase; text-align: center; text-indent: 0in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; color: #010000"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="color: #010000; font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-transform: uppercase; text-align: center; text-indent: 0in">Article
II</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: #010000">Section
2.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Requests for Registration</U>. At any time and from time to
time on or following the date hereof, any Stockholder may, subject to the provisions of this Agreement, request in writing that
the Company effect the registration of any or all of the Registrable Securities held by such Stockholder (an &ldquo;Initial Requesting
Holder&rdquo;) with the Commission under and in accordance with the provisions of the Securities Act, which notice shall specify
(i) the then-current name and address of such Initial Requesting Holder or Initial Requesting Holders, (ii) the amount of Registrable
Securities proposed to be registered and (iii) the intended method or methods and plan of disposition thereof, including whether
such requested registration is to involve an underwritten offering. The Company shall give prompt written notice of such registration
request to all other Holders. Except as otherwise provided in this Agreement and subject to Section 2.08 in the case of an underwritten
offering, the Company shall prepare and use its best efforts to file a Registration Statement with the Commission promptly after
such request has been given with respect to (i) all Registrable Securities included in the Initial Requesting Holder&rsquo;s request
and (ii) all Registrable Securities included in any request for inclusion delivered by any other Holder (together with the Initial
Requesting Holder, the &ldquo;Requesting Holders&rdquo;) within fifteen (15) days after delivery of the Company&rsquo;s notice
of the Initial Requesting Holder&rsquo;s registration request to such other Holders, in each case subject to Section 2.08 if such
offering is an underwritten offering. Thereafter, the Company shall use its best efforts to effect the registration under the Securities
Act and applicable state securities laws of such Registrable Securities for disposition in accordance with the intended method
or methods of disposition stated in such request; provided, however, that the Company will not be required to take any action pursuant
to this Article II if a Registration Statement is effective at the time such request is made and such Registration Statement may
be used for the offering and sale of the Registrable Securities requested to be registered. Subject to Section 2.09, the Company
may include in such registration other securities of the Company for sale, for the Company&rsquo;s account or for the account of
any other Person.</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: #010000">Section
2.02&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>S-1 or S-3 Registration; Shelf Registration</U>.</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"><FONT STYLE="color: #010000">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Each
Stockholder shall have the right pursuant to <U>Section 2.01</U> and subject to <U>Section 2.04</U>, to make up to six (6) requests
for registration on Form S-1 (or any successor form) or Form S-3 (or any successor form), for the Company to register all or a
portion of its Registrable Securities held by it so long as such Stockholder holds at least five percent (5%) of the shares of
Common Stock outstanding on the date of this Agreement, including for an offering to be made on a continuous or delayed basis pursuant
to Rule 415 under the Securities Act (or any similar rule that may be adopted by the Commission covering such Registrable Securities);
<I>provided</I>, <I>however</I>, that the number of Registrable Securities that are the subject of any such request must be at
least 10,000 in the aggregate.</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"><FONT STYLE="color: #010000">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>In
the case of a registration pursuant to this <U>Section 2.02</U>, (i) if the Company is then a WKSI, it shall use its best efforts
to, as promptly as practicable after the receipt of the request from the Initial Requesting Holder, file and cause to be immediately
effective a Registration Statement that shall constitute an automatic shelf registration with respect to all Registrable Securities
requested by the Requesting Holders to be included therein, and (B) if the Company is not then a WKSI, it shall use its best efforts
to file the Registration Statement and cause it to become effective as promptly as practicable after the receipt of the request
from the Initial Requesting Holder.</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: #010000">Section
2.03&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Delay for Disadvantageous Condition</U>. If, in connection
with any request for registration pursuant to this <U>Article II</U>, the Company provides a certificate, signed by the president
or chief executive officer of the Company, to the Requesting Holders stating that, in the good faith judgment of the Board of Directors
of the Company and its counsel, it would be materially detrimental to the Company or its stockholders for such Registration Statement
either to become effective or to remain effective for as long as such Registration Statement otherwise would be required to remain
effective, then the Company shall have the right to defer taking action with respect to such filing and any time periods with respect
to filing or effectiveness thereof shall be tolled correspondingly, for a period of not more than ninety (90) days after the request
of the Initial Requesting Holder is given; <I>provided</I>, <I>however</I>, that the Company may not invoke this right more than
once in any twelve (12) month period.</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: #010000">Section
2.04&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Limitation on Successive Registrations</U>. The Company shall
not be required to effect a registration pursuant to <U>Section 2.02</U> for one hundred twenty (120) days immediately following
the effective date of a Registration Statement filed pursuant to the prior exercise of any Holder&rsquo;s registration rights provided
for in <U>Section 2.02</U> and within six (6) months of any registration initiated by the Company to make a primary offering of
equity securities, provided that the Company is employing best efforts to cause such Registration Statement to become effective.
In addition, the Company shall not be required to effect more than two (2) registrations during any twelve (12) month period pursuant
to <U>Section 2.02</U>.</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: #010000">Section
2.05&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Demand Withdrawal</U>. Any Requesting Holder may, at any time
prior to the effective date of the Registration Statement relating to any requested registration, withdraw its Registrable Securities
from a requested registration. If all Registrable Securities are so withdrawn, the Company shall cease all efforts to effect such
registration upon such request, without liability to any Requesting Holder. Such registration will be not deemed an effected registration
for purposes of <U>Section 2.02</U> or <U>Section 2.04</U>.</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: #010000">Section
2.06&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Effective Registration</U>.</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"><FONT STYLE="color: #010000">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The
Company may satisfy its obligations under <U>Section 2.01</U> by amending (to the extent permitted by applicable law) any Registration
Statement previously filed by the Company under the Securities Act so that such amended Registration Statement will permit the
disposition (in accordance with the intended methods of disposition specified as aforesaid) of all of the Registrable Securities
for which a demand for registration has been made under <U>Section 2.01</U>.</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"><FONT STYLE="color: #010000">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Notwithstanding
any other provision of this Agreement to the contrary, a registration requested pursuant to this <U>Article II</U> will not be
deemed to be effected by the Company if it has not been declared effective by the Commission or become effective in accordance
with the Securities Act and kept effective as contemplated by <U>Section 2.06(c)</U> hereof.</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"><FONT STYLE="color: #010000">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The
Company will use its best efforts to keep a Registration Statement that has become effective as contemplated by this <U>Article
II</U> continuously effective, and not subject to any stop order, injunction or other similar order or requirement of the Commission,
until the earlier of (i) the expiration of the Required Period and (ii) the date on which all Registrable Securities covered by
such Registration Statement (x) have been disposed of pursuant to such Registration Statement or (y) cease to be Registrable Securities;
<I>provided</I>, <I>however</I>, that in no event will such period expire prior to the expiration of the applicable period referred
to in Section 4(a)(3) of the Securities Act and Rule 174 promulgated thereunder. For purposes of this <U>Section 2.06</U>, &ldquo;<U>Required
Period</U>&rdquo; shall mean, with respect to a Registration Statement on Form S-3, three (3) years following the first day of
effectiveness, and with respect to any other Registration Statement, one hundred eight (180) days following the first day of effectiveness
of such Registration Statement. In the event of any stop order, injunction or other similar order or requirement of the Commission
relating to any Registration Statement, the Required Period for such Registration Statement will be extended by the number of days
during which such stop order, injunction or similar order or requirement is in effect.</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: #010000">Section
2.07&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Selection of Underwriters</U>. Requesting Holders of a majority
of the Registrable Securities to be included in any registration requested under this <U>Article II</U> may request that the registration
be effected as an underwritten offering and such Requesting Holders shall have the right to select the managing underwriter or
underwriters for the offering.</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: #010000">Section
2.08&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Priority</U>. If a registration under this <U>Article II</U>
involves an underwritten offering and the managing underwriter(s) in its good faith judgment advises the Company that the number
of Registrable Securities requested to be included in the Registration Statement by the Requesting Holders exceeds the number of
securities that can be sold without adversely affecting the price, timing, distribution or sale of securities in the offering (the
&ldquo;<U>Underwriter&rsquo;s Maximum Number</U>&rdquo;), the Company shall be required to include in such Registration Statement
only such number of securities as is equal to the Underwriter&rsquo;s Maximum Number and the Company and the Requesting Holders
shall participate in such offering in the following order of priority:</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"><FONT STYLE="color: #010000">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>First,
the Company shall be obligated and required to include in the Registration Statement the number of Registrable Securities that
the Requesting Holders have requested to be included in the Registration Statement and that does not exceed the Underwriter&rsquo;s
Maximum Number; provided that the Registrable Securities to be included in the Registration Statement shall be allocated among
all the Requesting Holders in proportion, as nearly as practicable, to the respective number of Registrable Securities held by
them on the date of the request for registration pursuant to <U>Article II</U>. If any Requesting Holder would thus be entitled
to include more Registrable Securities than such Requesting Holder requested to be registered, the excess shall be allocated among
other Requesting Holders pro rata in the manner described in the preceding sentence.</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"><FONT STYLE="color: #010000">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Second,
the Company shall be entitled to include in such Registration Statement and underwriting that number of shares of Common Stock
and/or other securities of the Company that it proposes to offer and sell for its own account or the account of any other Person
to the full extent of the remaining portion of the Underwriter&rsquo;s Maximum Number.</P>

<P STYLE="color: #010000; font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-transform: uppercase; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="color: #010000; font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-transform: uppercase; text-align: center; text-indent: 0in">Article
III</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: #010000">Section
3.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Piggyback Registration Rights</U>. If the Company proposes
to register any of its equity securities under the Securities Act for sale to the public, (other than (i) in connection with a
registration of any employee benefit, retirement or similar plan, (ii) with respect to a transaction pursuant to Rule 145 under
the Securities Act, or (iii) in connection with an exchange offer), whether or not for sale for its own account, each such time
it will give written notice to all Holders of its intention to do so no less than 30 days prior to the anticipated filing date.
Upon the written request received by the Company from any Holder no later than the 15th day after receipt by such Holder of the
notice sent by the Company (which request shall state the intended method of disposition thereof), the Company will use best efforts
to cause the Registrable Securities as to which registration shall have been so requested to be included in the securities to be
covered by such Registration Statement, all to the extent required to permit the sale or other disposition by each Holder (in accordance
with its written request) (each, a &ldquo;<U>Participating Holder</U>&rdquo;) of such Registrable Securities so registered; <I>provided,
however</I>, that the Company may at any time prior to the effectiveness of any such Registration Statement, in its sole discretion
and upon written notice to the Participating Holders, abandon any proposed offering by the Company in which any Holder had requested
to participate. The number of Registrable Securities to be included in such a registration may be reduced or eliminated if and
to the extent, in the case of an underwritten offering, the managing underwriter (which shall be an underwriter reasonably acceptable
to the Participating Holders in the case of any underwritten offering) shall advise the Company that such inclusion would materially
jeopardize the successful marketing of the securities (including the Registrable Securities) proposed to be sold therein; <I>provided,
however,</I> that such number of shares of Registrable Securities shall not be reduced if any securities included in such registration
are included other than for the account of the Company unless the shares included in the Registration for the account of such Persons
are also reduced on a pro rata basis.</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: #010000">Section
3.02&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Priority</U>. If a registration under this Article III involves
an underwritten offering and the managing underwriter(s) in its good faith judgment advises the Company that the number of Registrable
Securities requested to be included in the Registration Statement by the Participating Holders exceeds the Underwriter&rsquo;s
Maximum Number, the Company shall be required to include in such Registration Statement only such number of securities as is equal
to the Underwriter&rsquo;s Maximum Number and the Company and the Participating Holders shall participate in such offering in the
following order of priority:</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"><FONT STYLE="color: #010000">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>First,
the Company shall be entitled to include in such Registration Statement the equity securities that the Company proposes to offer
and sell for its own account in such registration and that does not exceed the Underwriter&rsquo;s Maximum Number;</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"><FONT STYLE="color: #010000">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Second,
the Company shall be obligated and required to include in such Registration Statement that number of Registrable Securities that
the Participating Holders shall have requested to be included in such offering to the full extent of the remaining portion of the
Underwriter&rsquo;s Maximum Number, provided, that if the Registrable Securities of the Participating Holders exceeds such remaining
portion of the Underwriter&rsquo;s Maximum Number, the Registrable Securities shall be allocated among all Participating Holders
requesting to be included in such offering in proportion, as nearly as practicable, to the respective number of Registrable Securities
held by them on the date of the Company&rsquo;s notice pursuant to <U>Section 3.01</U>. If any Participating Holder would thus
be entitled to include more Registrable Securities than such Participating Holder requested to be registered, the excess shall
be allocated among other Participating Holders pro rata in the manner described in the preceding sentence;</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"><FONT STYLE="color: #010000">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Third,
the Company shall be entitled to include in such Registration Statement that number of equity securities that the Company proposes
to offer and sell for the account of any other Person, pursuant to piggyback registration rights or otherwise, to the full extent
of the remaining portion of the Underwriter&rsquo;s Maximum Number.</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: #010000">Section
3.03&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Not a Demand Registration</U>. No registration of Registrable
Securities effected under this <U>Article III</U> shall relieve the Company of its obligation to effect a registration of Registrable
Securities pursuant to <U>Article II</U>.</P>

<P STYLE="color: #010000; font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-transform: uppercase; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="color: #010000; font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-transform: uppercase; text-align: center; text-indent: 0in">Article
IV</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: #010000">Section
4.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Registration Procedures</U>. If and whenever the Company is
required pursuant to this Agreement to effect the registration of any of the Registrable Securities under the Securities Act, the
Company will, as expeditiously as possible:</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"><FONT STYLE="color: #010000">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>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 for the period requisite to permit the disposition
of the Registrable Securities to be so registered;</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"><FONT STYLE="color: #010000">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>furnish
to each Selling Holder and to each underwriter such number of copies of the Registration Statement and the prospectus included
therein (including each preliminary prospectus and each document incorporated by reference therein to the extent then required
by the rules and regulations of the Commission) as such Persons may reasonably request in order to facilitate the public sale or
other disposition of the Registrable Securities covered by such Registration Statement;</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"><FONT STYLE="color: #010000">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>if
applicable, use best efforts to register or qualify the Registrable Securities covered by such Registration Statement under the
securities or blue sky laws of such jurisdictions as the Selling Holders shall reasonably request, provided that the Company will
not be required to qualify generally to transact business in any jurisdiction where it is not then required to so qualify or to
take any action that would subject it to general service of process in any such jurisdiction where it is not then so subject;</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"><FONT STYLE="color: #010000">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>immediately
notify each Selling Holder, at any time when a prospectus relating thereto is required to be delivered under the Securities Act,
of the happening of any event 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 any material fact required to be stated therein or necessary
to make the statements therein not misleading in the light of the circumstances then existing and as promptly as practicable amend
or supplement the prospectus or take other appropriate action so that the prospectus does not include an untrue statement of a
material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading
in the light of the circumstances then existing;</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"><FONT STYLE="color: #010000">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>make
available for inspection by the Selling Holders designated by a majority thereof, and any attorney, accountant or other agent retained
by such representative of the Selling Holders (the &ldquo;<U>Inspectors</U>&rdquo;), all financial and other records, pertinent
corporate documents and properties of the Company (collectively, the &ldquo;<U>Records</U>&rdquo;), and cause the Company&rsquo;s
officers, directors and employees to supply all information reasonably requested by any such Inspector in connection with such
Registration Statement;</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"><FONT STYLE="color: #010000">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>cause
all of the Registrable Securities to be listed on the New York Stock Exchange MKT if the Common Stock continues to be so listed;</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"><FONT STYLE="color: #010000">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>use
best efforts to keep effective and maintain for the period of distribution, qualification, approval or listing obtained to cover
the Registrable Securities as may be necessary for the Selling Holders to dispose thereof and shall from time to time amend or
supplement any prospectus used in connection therewith to the extent necessary in order to comply with applicable law;</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"><FONT STYLE="color: #010000">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>use
best efforts to cause the Registrable Securities to be registered with or approved by such other governmental agencies or authorities
as may be necessary by virtue of the business and operations of the Company to enable the Selling Holders to consummate the disposition
of such Registrable Securities; and</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"><FONT STYLE="color: #010000">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>take
such other actions as are reasonably requested by the Selling Holders or the underwriters, if any, in order to expedite, facilitate
or consummate the disposition of such Registrable Securities.</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: #010000">Section
4.02&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Furnish Information</U>. It shall be a condition precedent
to the obligations of the Company to take any action pursuant to this Agreement that the Selling Holders shall furnish to the Company
such information regarding themselves, the Registrable Securities held by them and the intended method of disposition of such securities
as shall be reasonably required to effect the registration of their Registrable Securities and shall execute such documents in
connection with such registration as the Company may reasonably request.</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: #010000">Section
4.03&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Expenses.</U></P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"><FONT STYLE="color: #010000">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Registration
Expenses</U>&rdquo; means all expenses incident to the Company&rsquo;s performance under or compliance with this Agreement, including
without limitation, all registration and filing fees, blue sky fees and expenses, printing expenses, listing fees, fees and disbursements
of counsel and independent public accountants for the Company, fees of the Financial Industry Regulatory Authority, Inc., transfer
taxes, fees of transfer agents and registrars, costs of insurance and reasonable out-of-pocket expenses (including without limitation,
reasonable legal fees of one counsel for all Selling Holders), but excluding any Selling Expenses. &ldquo;<U>Selling Expenses</U>&rdquo;
means all underwriting fees, discounts and selling commissions allocable to the sale of the Registrable Securities.</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"><FONT STYLE="color: #010000">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The
Company will pay all Registration Expenses in connection with each Registration Statement filed pursuant to this Agreement, whether
or not the Registration Statement becomes effective, and the Selling Holders shall pay all Selling Expenses in connection with
any Registrable Securities registered pursuant to this Agreement.</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: #010000">Section
4.04&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Underwriting Requirements</U>. The Company shall not be required
under <U>Section 3.01</U> to include any of the Registrable Securities in an underwritten offering of the Company&rsquo;s securities
unless the Participating Holders accept the terms of the underwriting as agreed upon between the Company and the underwriters;
<I>provided, however</I>, that any such agreement shall be reasonably satisfactory in substance and form to each such Holder and
the underwriters and contain such representations and warranties by the Company (for the benefit of such Holders) and such other
terms as are generally prevailing in agreements of this type, including, without limitation, indemnities to the effect and to the
extent provided in <U>Section 4.06</U> below, and no Holder shall be required to make in any such agreement any representations
or warranties to or agreements with the Company or the underwriters other than representations, warranties or agreements regarding
such Holder, such Holder&rsquo;s Registrable Securities and such Holder&rsquo;s intended method of distribution and any other representation
required by law. In the case of any underwritten offering, the Company shall also furnish to each Participating Holder a signed
counterpart, addressed to such Holder, of (a) an opinion of counsel for the Company, dated the date of dated the date of the closing
under the underwriting agreement), reasonably satisfactory in form and substance to the Participating Holders, and (b) a &ldquo;comfort&rdquo;
letter dated the date of the closing under the underwriting agreement, signed by the independent public accountants who have certified
the Company&rsquo;s financial statements included in such registration statement, in each case covering substantially the same
matters with respect to such registration statement (and the prospectus included therein) and, in the case of the accountants&rsquo;
letter, with respect to events subsequent to the date of such financial statements, as are customarily covered in opinions of issuer&rsquo;s
counsel and in accountants&rsquo; letters delivered to the underwriters in underwritten public offerings of securities and, in
the case of the accountants&rsquo; letter, such other financial matters, and, in the case of the legal opinion, such other legal
matters, as the Participating Holders may reasonably request.</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">&nbsp;</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; color: #010000; text-align: justify">Section
4.05&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Delay of Registration</U>. No Holder shall have any right to
obtain or seek an injunction restraining or otherwise delaying any registration of the Company as the result of any controversy
that might arise with respect to the interpretation or implementation of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: #010000">Section
4.06&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Indemnification.</U></P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"><FONT STYLE="color: #010000">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>In
the event of a registration of any Registrable Securities under the Securities Act pursuant to this Agreement, the Company will
indemnify and hold harmless each Selling Holder thereunder and each Person, if any, who controls such Selling Holder within the
meaning of the Securities Act and the Exchange Act, against any losses, claims, damages or liabilities (including reasonable attorneys&rsquo;
fees) (&ldquo;<U>Losses</U>&rdquo;), joint or several, to which such Selling Holder or controlling Person may become subject under
the Securities Act, the Exchange Act or otherwise, insofar as such Losses (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 any Registration Statement under which
such Registrable Securities were registered under the Securities Act pursuant to this Agreement, 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 or advance, if so requested, each such Selling Holder and each such controlling Person for any legal or other
expenses reasonably incurred or to be incurred by them in connection with investigating or defending any such Loss or actions;
<I>provided</I>, <I>however</I>, that the Company will not be liable in any such case if and 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 such Selling Holder, such underwriter or such controlling Person in
writing specifically for use in such Registration Statement or prospectus.</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"><FONT STYLE="color: #010000">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Each
Selling Holder agrees to indemnify and hold harmless the Company, its directors, officers, employees and agents and each Person,
if any, who controls the Company within the meaning of the Securities Act or of the Exchange Act to the same extent as the foregoing
indemnity from the Company to such Selling Holder, but only with respect to information regarding such Selling Holder furnished
in writing by or on behalf of such Selling Holder expressly for inclusion in any Registration Statement or prospectus relating
to the Registrable Securities, or any amendment or supplement thereto; <I>provided</I>, <I>however</I>, that the liability of such
Selling Holder shall not be greater in amount than the dollar amount of the proceeds received by such Selling Holder from the sale
of the Registrable Securities giving rise to such indemnification, except in the case of the willful misconduct of the Selling
Holder.</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"><FONT STYLE="color: #010000">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>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 so to notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified
party. 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 reasonably satisfactory to such indemnified party and, after notice from the indemnifying
party to such indemnified party of its election so to assume and undertake the defense thereof, the indemnifying party shall not
be liable to such indemnified party under this <U>Section 4.06</U> 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 as so elected;
<I>provided</I>, <I>however</I>, that, (i) if the indemnifying party has failed to assume the defense and employ counsel or (ii)
if the defendants in any such action include both the indemnified party and the indemnifying party and counsel to the indemnified
party shall have concluded that there may be reasonable defenses available to the indemnified party that are different from or
additional to those available to the indemnifying party or that the interests of the indemnified party reasonably may be deemed
to conflict with the interests of the indemnifying party, then the indemnified party shall have the right to select a separate
counsel and to assume such legal defense and otherwise to participate in the defense of such action, with the expenses and fees
of such separate counsel and other expenses related to such participation to be reimbursed by the indemnifying party is incurred.
The Indemnifying Person shall not be liable for any settlement of any proceeding effected without its written consent, but if settled
with such consent or if there be a final judgment for the plaintiff, the Indemnifying Person agrees to indemnify each Indemnified
Person from and against any loss or liability by reason of such settlement or judgment. Notwithstanding the foregoing sentence,
if at any time an Indemnified Person shall have requested that an Indemnifying Person reimburse the Indemnified Person for fees
and expenses of counsel as contemplated by this paragraph, the Indemnifying Person shall be liable for any settlement of any proceeding
effected without its written consent if (i) such settlement is entered into more than 30 days after receipt by the Indemnifying
Person of such request and (ii) the Indemnifying Person shall not have reimbursed the Indemnified Person in accordance with such
request prior to the date of such settlement. No Indemnifying Person shall, without the written consent of the Indemnified Person,
effect any settlement of any pending or threatened proceeding in respect of which any Indemnified Person is or could have been
a party and indemnification could have been sought hereunder by such Indemnified Person, unless such settlement (x) includes an
unconditional release of such Indemnified Person, in form and substance reasonably satisfactory to such Indemnified Person, from
all liability on claims that are the subject matter of such proceeding and (y) does not include any statement as to or any admission
of fault, culpability or a failure to act by or on behalf of any Indemnified Person.</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"><FONT STYLE="color: #010000">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>If
the indemnification provided for in this <U>Section 4.06</U> is unavailable to the Company or the Selling Holders or is insufficient
to hold them harmless in respect of any Losses, then each such indemnifying party, in lieu of indemnifying such indemnified party,
shall contribute to the amount paid or payable by such indemnified party as a result of such Losses as between the Company on the
one hand and each Selling Holder on the other, in such proportion as is appropriate to reflect the relative fault of the Company
on the one hand and of each Selling Holder on the other in connection with the statements or omissions which resulted in such Losses,
as well as any other relevant equitable considerations. The relative fault of the Company on the one hand and each Selling Holder
on the other shall be determined by reference to, among other things, whether the untrue or alleged untrue statements of a material
fact or the omission or alleged omission to state a material fact has been made by, or relates to, information supplied by such
party, and the parties&rsquo; relative intent, knowledge, access to information and opportunity to correct or prevent such statement
or omission.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person
who is not guilty of such fraudulent misrepresentation.</P>

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

<P STYLE="color: #010000; font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-transform: uppercase; text-align: center; text-indent: 0in">Article
V</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: #010000">Section
5.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Communications</U>. All notices and other communications provided
for or permitted hereunder shall be made in writing by electronic facsimile or electronic transmission, courier service or personal
delivery;</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"><FONT STYLE="color: #010000">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>if
to a Holder, at the most current address given by such holder to the Company in accordance with the provisions of this <U>Section
5.01</U>,</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"><FONT STYLE="color: #010000">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>if
to the Company, initially at its address set forth in its reports filed with the Commission, and</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in"><FONT STYLE="color: #010000">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>for
each, thereafter at such other address, notice of which is given in accordance with the provisions of this <U>Section 5.01</U>.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">All such notices and communications
shall be deemed to have been received at the time delivered by hand, if personally delivered; when receipt acknowledged, if by
electronic facsimile or electronic transmission; and on the next business day if timely delivered to an air courier guaranteeing
overnight delivery.</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: #010000">Section
5.02&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Successor and Assigns</U>. This Agreement shall inure to the
benefit of and be binding upon the successors and assigns of each of the parties.</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: #010000">Section
5.03&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Counterparts</U>. This Agreement may be executed in any number
of counterparts and by different parties hereto in separate counterparts, each of which counterparts, when so executed and delivered,
shall be deemed to be an original and all of which counterparts, taken together, shall constitute but one and the same Agreement.</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: #010000">Section
5.04&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Headings</U>. The headings in this Agreement are for convenience
of reference only and shall not limit or otherwise affect the meaning hereof.</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: #010000">Section
5.05&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Governing Law</U>. THE LAWS OF THE STATE OF TEXAS SHALL GOVERN
THIS AGREEMENT WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS.</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: #010000">Section
5.06&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Severability of Provisions</U>. Any provision of this Agreement
which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition
or unenforceability without invalidating the remaining provisions hereof or affecting or impairing the validity or enforceability
of such provision in any other jurisdiction.</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; color: #010000">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: #010000">Section
5.07&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Entire Agreement</U>. This Agreement, together with the Purchase
Agreement and the other documents provided for therein are intended by the parties as a final expression of their agreement and
intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject
matter contained herein. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred
to herein with respect to the registration rights granted by the Company with respect to the securities sold pursuant to the Purchase
Agreement. This Agreement, the Purchase Agreement and the other documents provided for therein supersede all prior agreements and
understandings between the parties with respect to such subject matter except as specified in the Purchase Agreement.</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: #010000">Section
5.08&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Attorneys&rsquo; Fees</U>. In any action or proceeding brought
to enforce any provision of this Agreement, the successful party shall be entitled to recover reasonable attorneys&rsquo; fees
in addition to its costs and expenses and any other available remedy.</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: #010000">Section
5.09&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Amendment</U>. This Agreement may be amended only by means
of a written amendment signed by the Company and by the Holders of a majority of the Registrable Securities.</P>

<P STYLE="color: #010000; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: #010000">Section
5.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Assignment of Rights</U>. The rights of any Holder under this
Agreement may not be assigned to any Person without the prior written consent of the Company.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0in">[<I>Signature page follows.</I>]</P>

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


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    <!-- Field: /Page -->

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><B>COMPANY:</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">DGSE COMPANIES, INC., a Nevada corporation</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: justify">By:</TD>
    <TD STYLE="width: 46%; text-align: justify; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">Name: Matthew Peakes</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">Title: President, Chief Executive Officer</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 3in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps">Registration
Rights Agreement</FONT></P>

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

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


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 3in; text-align: justify"><B>&nbsp;</B></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>&nbsp;</TD>
    <TD COLSPAN="2"><B>STOCKHOLDERS:</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">ELEMETAL, LLC, a Delaware limited liability company</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 4%; text-decoration: none">By: </TD>
    <TD STYLE="width: 46%; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">Name: William E. LeRoy</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">Title: President/CEO</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">NTR METALS, LLC, Texas limited liability company</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 3in; 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: 50%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 4%; text-decoration: none; text-align: justify">By:</TD>
    <TD STYLE="width: 46%; text-align: justify; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></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: 50%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 7%; text-decoration: none; text-align: justify">Name: </TD>
    <TD STYLE="width: 43%; text-align: justify; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-decoration: none; text-align: justify">Title: </TD>
    <TD STYLE="text-align: justify; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 3in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps">Registration
Rights Agreement</FONT></P>

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

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


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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>5
<FILENAME>v442552_ex99-1.htm
<DESCRIPTION>EXHIBIT 99.1
<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; text-align: right"><B>Exhibit 99.1</B></P>

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

<P STYLE="margin: 0"></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: 58%; font-weight: bold; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 18pt"><B>P</B></FONT><B><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">RESS</FONT></B><B><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 18pt"> R</FONT></B><B><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">ELEASE</FONT></B></TD>
    <TD ROWSPAN="2" STYLE="width: 42%; font-weight: bold; font-size: 18pt; text-align: right">&nbsp;<IMG SRC="image_001.jpg" ALT=""></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: bold; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>FOR IMMEDIATE RELEASE</I></B></FONT></TD></TR>
</TABLE>
<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DGSE Companies, Inc. Enters into Agreement
with Elemetal and NTR Metals</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">Dallas &ndash; June 21, 2016 - DGSE Companies, Inc. (&ldquo;DGSE&rdquo;
or the &ldquo;Company&rdquo;) entered into a stock purchase agreement (the &ldquo;Purchase Agreement&rdquo;) on June 20, 2016 with
Elemetal, LLC (&ldquo;Elemetal&rdquo;), and NTR Metals, LLC (&ldquo;NTR&rdquo;), pursuant to which (i) DGSE agreed to sell and
issue to NTR shares of Common Stock at a stock price of $0.41 per share in exchange for the cancellation and forgiveness of all
amounts outstanding under that certain Loan Agreement between DGSE and NTR dated July 19, 2012 and an associated $7,500,000 Revolving
Credit Note of the same date executed by DGSE in favor of NTR (which indebtedness and accrued interest as of June&nbsp;17, 2016
was $2,416,428.35), and (ii) DGSE agreed to sell and issue to Elemetal 8,536,585 shares of Common Stock at a stock price of $0.41
per share and a warrant to purchase an additional 1,000,000 shares of Common Stock at an exercise price of $0.65 per share (the
&ldquo;Warrant&rdquo;) in exchange for the cancellation and forgiveness of $3,500,000 of trade payables owed to Elemetal as a result
of bullion-related transactions (together, the &ldquo;Transactions&rdquo;).</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 $0.41 per share purchase price is a 17% premium over the
90-day trailing average closing price preceding the announcement by Elemetal and NTR of a proposed transaction on February 8, 2016.
Additionally, the $0.41 per share represents an increase of 9% from the original offer from Elemetal and NTR of $0.375 per share
in November 2015, and a 73% increase in the exercise price of the Warrant.</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">In connection with the closing of the Purchase Agreement, DGSE
will enter into a registration rights agreement with NTR and Elemetal providing for, among other things, demand and piggyback registration
rights with respect to the shares to be issued and registration procedures. The closing of the Transactions is expected to take
place following satisfaction of various closing conditions, including obtaining the approval of DGSE&rsquo;s stockholders.</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">Matthew Peakes, Chairman and Chief Executive Officer, stated,
&ldquo;We are pleased to have signed and are excited about the potential of the deal with Elemetal and NTR. While waiting on shareholder
approval, we will continue to strengthen the relationship with Elemetal and believe their position as a global leader in the precious
metals industry will help us on our path to consistent profitability.&rdquo;</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><U>Important Information</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">This press release shall not constitute an offer to sell or
the solicitation of an offer to buy any security. The shares of the Company&rsquo;s Common Stock, the Warrant and the shares of
the Company&rsquo;s Common Stock issuable upon exercise of the Warrant are being so issued and purchased pursuant to an applicable
exemption from the registration requirements of the Securities Act and applicable state securities laws.</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">In connection with its efforts to obtain stockholder approval
of the Transactions and certain related matters, the Company will file with the Securities and Exchange Commission (the &ldquo;SEC&rdquo;)
and mail to its stockholders of record a Definitive Proxy Statement on Schedule 14A, which will contain information about the Company,
the Transactions and the related matters to be voted upon by the Company&rsquo;s stockholders at the Company&rsquo;s 2016 annual
meeting of stockholders. <B>STOCKHOLDERS ARE URGED TO READ THE DEFINITIVE PROXY STATEMENT ON SCHEDULE 14A CAREFULLY WHEN IT IS
AVAILABLE BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION.</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"></P>

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<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 STYLE="vertical-align: top">
    <TD STYLE="width: 58%; font-weight: bold; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 18pt"><B>P</B></FONT><B><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">RESS</FONT></B><B><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 18pt"> R</FONT></B><B><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">ELEASE</FONT></B></TD>
    <TD ROWSPAN="2" STYLE="width: 42%; font-weight: bold; font-size: 18pt; text-align: right">&nbsp;<IMG SRC="image_001.jpg" ALT=""></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: bold; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>FOR IMMEDIATE RELEASE</I></B></FONT></TD></TR>
</TABLE>
<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">In addition to receiving the Definitive Proxy Statement on
Schedule 14A from the Company by mail, the Definitive Proxy Statement on Schedule 14A, as well as other filings containing information
about the Company, may also be obtained, without charge, from the SEC&rsquo;s website at <U>www.sec.gov</U>.</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 and its directors and executive officers may be
deemed to be participants in the solicitation of proxies. Information concerning the interests of the Company&rsquo;s directors
and executive officers in the Transactions will be set forth in the Definitive Proxy Statement on Schedule 14A. Other information
concerning the Company and its directors and executive officers is contained in the Company&rsquo;s other filings with the SEC,
including the Company&rsquo;s Annual Report on Form 10-K for the year ended December 31, 2015, which was filed with the SEC on
March&nbsp;30, 2016 and amended on April&nbsp;27, 2016 and the Company&rsquo;s Quarterly Report on Form 10-Q for the fiscal quarter
ended March&nbsp;31, 2016 that was filed with the SEC on May 16, 2016.</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"><B><U>About DGSE Companies</U></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">DGSE Companies, Inc. wholesales and retails <U>jewelry</U>,
<U>diamonds</U>, <U>fine watches</U>, and precious metal <U>bullion</U> and <U>rare coin products</U> through its Charleston Gold
&amp; Diamond Exchange, Chicago Gold &amp; Diamond (formerly Bullion Express), and Dallas Gold &amp; Silver Exchange operations.
DGSE also owns Fairchild International, Inc., one of the largest vintage watch wholesalers in the country. In addition to its
retail facilities in Illinois, South Carolina, and Texas, the Company operates internet websites which can be accessed at <U>www.dgse.com</U>,
and <U>www.cgdeinc.com</U>. Real-time price quotations and real-time order execution in precious metals are provided on another
DGSE website at <U>www.USBullionExchange.com</U>. Wholesale customers can access the full vintage watch inventory through the
restricted site at <U>www.FairchildWatches.com</U>. The Company is headquartered in Dallas, Texas and its common stock trades
on the NYSE MKT exchange under the symbol &ldquo;DGSE.&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">This press release includes statements which may constitute
&quot;forward-looking&quot; statements, usually containing the words &quot;believe,&quot; &quot;estimate,&quot; &quot;project,&quot;
&quot;expect&quot; or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results
to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but
are not limited to, whether or not the Company&rsquo;s stockholders approve the Transactions, continued acceptance of the Company's
products and services in the marketplace, competitive factors, dependence upon third-party vendors, and other risks detailed in
the Company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements,
the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.</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"><B>Contact:</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">DGSE Companies, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Matthew Peakes, Chairman, President and CEO</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">972-587-4021</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>investorrelations@dgse.com</U></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"><B>&nbsp;</B></P>

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

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

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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
